New Homes
The UK is facing a housing crisis with properties returning to 1980s values of inflation and negative equity a real threat. New homes need to be built on a scale not seen since the 1950s to prevent a housing crash in ther UK.
The UK is presently producing around 200,000 new homes each year but this will need to rise by a third if we are to keep housing affordable for first time buyers. The National Housing and Planning Advice Unit (NHPAU) has produced a report saying that property prices will rise to 13 times average salary should this trend continue. With many people priced out of ownership and occupations who could traditionally buy property not being able to get on the housing ladder, this problem is set to grow.
This could effect the property market if there is a shift in outlook of middle earning, young people who see property as unobtainable and out of reach. Gordon Brown has promised action on new home building under his leadership.