House prices to increase 40%

07 August 2007
The price of buying a house is to go up by 40 per cent within the next five years, it has been claimed.

Research from the National Housing Federation (NHF) has estimated that the average cost of a house - £206,594 - will go on to break the £300,000 barrier outside of London by 2012.

It added mortgages in the capital will be worth as much as £500,000 within the timeframe.

And NHF chief executive David Orr remarked that first-time buyers will find it increasingly difficult to get on the property ladder when the time comes to buy.

"More and more people are going to find themselves priced out of the property market - and struggling to find a decent home," he said.

However, Firstrung has reported that house prices in Ireland are slowing down.

According to the Bank of Ireland Irish Property Review, the sector will experience zero growth rate for the rest of 2007.

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