House prices in England are set to double in the next decade unless more action is taken to tackle the broken housing market in Britain. Thats the conclusion of a new report from housing charityShelter which says that the average price of a home in England is set to rise to 446,000 by 2024.
There search, collected by Shelter and KPMG, found the cost of a home could quadruple in 20 years if there is not a major house building programme. Keep reading to find out more.
Average house price set to hit 900,000 by 2034
There search from Shelter and KPMG found that 100,000 fewer homes than are needed every year are being built. Prices of houses are set to double to 446,000 in the next decade and, if current trends continue, the average cost of a house is expected to increase to 900,000 by 2034.
The Building The Homes We Need report urges the government to take action in order to increase the number of new homes built in the UK. One of the key measures involves giving planning authorities the power to create “New Homes Zones” where there would be no development tax and landowners would be able to invest their assets in exchange for shares in any future increases in value.
The charity has also suggested that a new National Housing Investment Bank should be established to provide low cost, long-term loans for housing providers.
Addressing the leaders of the three main political parties at the start of the report,Shelter’s chief executive, Campbell Robb, and KPMG’s UK head of corporate affairs, Marianne Fallon say the country “needs a serious plan to transform housing supply”.
They write: “If the next government shies away from showing the strong leadership needed, having a home of your own to rent or buy affordably will become a distant dream for an increasing number of people in this country.Rents will rise and homelessness will increase. The economic recovery will beheld back by high housing costs, an immobile workforce and unstable housing markets.”
Mr Robb added: “The reality is that government backed mortgages like Help toBuy or tweaks to planning rules will only ever be sticking plaster solutions that risk making the problem worse, not better.”