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| Homes 'to cost ten times salary' | Homes 'to cost ten times salary' |
| (40 minutes later) | |
| UK house prices could rise to the equivalent of ten times average salaries by 2026, a newly-established think tank has said. | |
| To avoid this, more homes must be built in order to boost supply, the National Housing and Planning Advice Unit (NHPAU) study found. | |
| At present, a typical UK home costs the equivalent of seven times salary. | At present, a typical UK home costs the equivalent of seven times salary. |
| Even at current levels more than a third of non-homeowners think they will never be able to buy, the NHPAU added. | Even at current levels more than a third of non-homeowners think they will never be able to buy, the NHPAU added. |
| The figures for affordibility look at the median earnings of the lowest 25% of earners, and the lowest 25% of house prices. | The figures for affordibility look at the median earnings of the lowest 25% of earners, and the lowest 25% of house prices. |
| "First-time buyers have seen a big rise in the deposit needed to buy a home and the amount of their income spent on mortgages," Professor Stephen Nickell, chair of the NHPAU, said. | "First-time buyers have seen a big rise in the deposit needed to buy a home and the amount of their income spent on mortgages," Professor Stephen Nickell, chair of the NHPAU, said. |
| "Demand for housing is growing and unless action is taken, pressure on the market will only get worse," Professor Nickell added. | "Demand for housing is growing and unless action is taken, pressure on the market will only get worse," Professor Nickell added. |
| But the NHPAU's supposition that homes will cost ten times salary by 2026 depends on the number of homes being built staying steady at 190,000 a year - the level predicted for the next decade. | But the NHPAU's supposition that homes will cost ten times salary by 2026 depends on the number of homes being built staying steady at 190,000 a year - the level predicted for the next decade. |
| Currently 168,000 homes a year are being built. | Currently 168,000 homes a year are being built. |
| Housing shortfall | Housing shortfall |
| The NHPAU has been set up to advise policymakers on housing. | The NHPAU has been set up to advise policymakers on housing. |
| In 2004 the government's Barker review recommended a substantial increase to new house building to curb ever-increasing house price inflation. | In 2004 the government's Barker review recommended a substantial increase to new house building to curb ever-increasing house price inflation. |
| The government has announced several major house building projects around the UK and has moved to ease planning regulations. | The government has announced several major house building projects around the UK and has moved to ease planning regulations. |
| But, at present, house building is still lagging behind the number of new households forming each year. | But, at present, house building is still lagging behind the number of new households forming each year. |
| On Thursday, the Halifax, the UK's biggest mortgage lender, said house price inflation eased a little in May to 0.3%. | On Thursday, the Halifax, the UK's biggest mortgage lender, said house price inflation eased a little in May to 0.3%. |
| However, the annual rate of inflation stands at 10.6% more than double the rate of increase in average salaries. | However, the annual rate of inflation stands at 10.6% more than double the rate of increase in average salaries. |
| UK house prices have more than doubled since the late 1990s. | UK house prices have more than doubled since the late 1990s. |