People in the North West will face an average house price of almost £250,000 by 2011, a 77% increase in six years, according to a new report. The National Housing Federation (NHF) has produced the 'North West's Housing Timebomb', which reveals that house prices in the North West have almost doubled in the last five years. The average house price in 2005 was almost £140,000, compared to an average of just over £70,000 in 2000. Whilst the value of property has risen rapidly, wages have not and the average house price in the North West is now nearly a staggering six and a half times the average salary.
The report contains figures from the Oxford Economic Forecasting suggesting that the North West will experience the highest house price inflation of any region over the next five years. This may be good news for homeowners but it is a gloomy outlook for those not yet on the property ladder. Housing waiting lists and homelessness have leapt dramatically in the region and the situation is currently worse than any other region outside London.
* Over 200,000 households are now waiting for an affordable home in the region.
* North West has seen the highest percentage rise in the last five years.
* The North West now has more homeless families than anywhere outside London.
* Less than 9% of new homes were affordable for people to unable to buy in the open market.
Malcolm Struthers, NHF Communications Officer, said: "The recent and predicted rapid rise in house prices puts a huge financial strain on those looking to get a foot on the property ladder. This has a major social and economic impact on the North West. With homelessness and housing waiting lists rising so dramatically in the region, the Government must provide more affordable homes to tackle these major issues. It is vital that through the Comprehensive Spending Review 2007 the Government make housing a top priority for increased investment."
