THE average cost of a home in the UK will hit £300,000 in 2020, according to a new report. Accountants Pricewaterhouse Coopers said it expected house prices - currently at an average of £225,000 - to rise by around 4 per cent every year for the next seven years.
Such a prediction makes getting on the ladder now more imperative than ever. If prices do hit the £300,000 figure, they would equate to more than 11 times Britain’s current average £26,000-a-year wage.
But there is hope. Loans are being granted at levels not seen since the credit crunch struck in 2007. Between July and September, a mortgage total of £27billion was agreed.
This is the largest three-month total for six years, a sign of how the mortgage freeze which crippled the country’s housing market has thawed.
The Royal Institution of Chartered Surveyors has told how there is “rocketing interest” from aspiring home buyers which is “dwarfing” the number of properties coming on to the market.
Figures from the Office for National Statistics last month showed how house prices are rising in all English regions, except the North East.
Overall, prices have jumped by 3.8 per cent over the last 12 months, the fastest rise for three years, to an average of £245,000.
DOMVS: 17th Jan 2014 11:31:00