ARLA and the NAEA are standing firm in their beliefs that the issues facing the housing market – price hikes, rent increases, less people able to get on the property ladder - will only be compounded over the next ten years.
The organisations released a joint statement today (Thursday), which forecasted that home ownership will fall drastically by 7%, and the rental population will increase by 9% by 2025 – great news for landlords after a series of setbacks, but not exactly what the government is striving for.
ARLA is predicting that average rents across the UK will rise by over a quarter, whilst the NAEA gloomily anticipate that property prices will soar by up to 50%.
The sibling organisations say that a “drastic and immediate” overhaul is necessary to fix Britain’s broken housing market.
With the average house price currently around £280,000, the NAEA and ARLA Housing 2025 Report predicts an average price of £419,000 in ten years’ time, with buyers in London expected to have to pay an average of £930,000 to become a homeowner. Nationwide, this will cause homeownership amongst the working population to drop dramatically, from 62% to 55%, with nearly 9% more households having to choose to rent.
In turn, this will push the price of rent up. The monthly rental spend is predicted to increase by 27%, from a current UK average of £134 per week to £171 in 2025. Londoners will again bear the brunt of the rises, with a 34% rise, from a current average of £234 up to £314.
The government’s proposed changes to help Britain become a nation of homeowners does plan to help move the country’s property market in the right direction, however according to the research from two of the countries most trusted property organisations, the future does not look bright for renters, or anyone hoping to make a step onto the property ladder.
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