Rising house prices 'will stop people getting on the property ladder'

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Housing in the south-west, south-east and east of the UK could become so expensive by 2026 that most people will have little choice but to rent, a new report has warned.

According to the National Housing and Planning Advice Unit, supply issues will mean that housing in these areas will become less affordable than that found in London.

By analysing current trends, the report estimates that average house prices could rise to 11.3 times earnings in the east of England, 12.4 times in the south-east and 12.9 in the south-west by 2026.

In London, the typical house will cost 11 times the average salary.

"England is an aspirational, prosperous and growing nation and that means a demand for more housing. If we fail to act then a generation of buyers will be unable to get a foothold on the housing ladder, not just in London but across large swathes of England," warned Professor StephenNickell, chairman of the NHPAU.

"Any cooling in the housing market would only affect affordability in the very short term. Affordability is a complex and long-term issue and we need to take a long-term view - which means we need to build more houses now."

Earlier this year, Arla reported that demand for rental properties in the UK outstripped supply during the three months to the end of May.

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