House prices to hit £900,000 without action - report
Published by Max Salsbury for 24dash.com in Housing and also in Central Government, Development
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Average house prices will be over £900,000 by 2034 unless action is taken now, a report has warned.
The report by housing charity Shelter and auditors KPMG concludes that the government formed after the 2015 election must commit to a "radical" programme of housebuilding.
According to the report, the nation is building less than half of the 250,000 new homes the country needs each year, but that the situation could be resolved within a single parliament.
Research has estimated that if present trends continue, average house prices will quadruple by 2034.
The report calls on politicians to bring in a number of "essential" reforms to increase the supply of affordable housing, including:
- Releasing infrastructure spending to unlock stalled house-building sites.
- Setting up a ‘help to build’ scheme, using government guarantees to help small builders access the market.
- Introducing a new national housing investment bank to finance affordable house building.
- Putting housing at the centre of city deals, giving towns and cities the power to build the homes their communities need.
Marianne Fallon, UK head of corporate affairs at KPMG, said: "What is clear from our report is just how big and messy our housing problem is. For many people, particularly those in their twenties, the aspiration of owning their own ‘castle’ is fast becoming a fairy tale. We also know, as an employer of 12,000 people, that an unstable housing market affects our ability to attract and retain talent.
"However, our report shows that a government which is prepared to roll up its sleeves and commit to a programme to tackle each element of the problem, over a parliament and beyond, has the chance to make home ownership a realistic dream again."
Campbell Robb, chief executive of Shelter, added: "With housing now a top issue for voters, politicians of all parties are rightly beginning to feel the need to act.
"This isn’t just a blueprint for how to get Britain building, it’s a blueprint for how to restore the aspirations of a generation who’ve been left with little hope of a home of their own."