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Tuesday, 9 February 2016

Lib Dems warn average house prices will top £1m

Young graduates face a bleak housing future as Liberal Democrat research shows the average house price will top £1m within 16 years. The research shows that someone leaving University today will face a massive challenge on getting onto the first rung of the property ladder. The average property price in the UK will reach £650,000 within a decade, an increase of £360,000 on today’s average price.

The research is released ahead of the Liberal Democrat opposition day debate, this afternoon, in Parliament on the ‘State of the nation’s housing market’. Liberal Democrat research shows that the gap between the amount people can borrow on average through a mortgage and house prices is widening. Most starkly in London the gap between how much can be borrowed and property prices will reach £1.5m by 2026 in the capital.

In response to this crisis the Liberal Democrats, in the Commons, say they will propose a plan to try and help by:
  • Allowing councils to build more houses through lifting the current arbitrary cap on council borrowing.
  • Encouraging a massive increase in house building to 300,000 per annum by setting out a long-term housing plan for the next 20-30 years - something the government has failed to do.
  • Building 10 New Garden Cities including 5 in the South East.

Ahead of the debate on the Liberal Democrat proposals, party leader, Tim Farron said: "Everyone deserves a decent home to call their own. The aspirational and entrepreneurial classes are seeing the ladder of home ownership kicked away from under them. The Government’s schemes are merely a poor sticking plaster. We have laid out a plan to help. We need radical, ambitious action to deliver the homes we need. The only answers are found in big solutions - new garden cities, allowing councils to build housing stock, and bring thousands of empty homes back into use."

"It is time for the Government to stop tinkering around the edges of the problem and actually get to work tackling this crisis." Mr Farron added.