A report just released has revealed that the price of an average house will rise by 14% over the course of the next four years. This will be the highest ever average ever recorded by Britain.
More people cannot afford to get on the property ladder
The typical home looks set to be worth in excess of £200,000 by the time 2015 comes around, with the current average being £176,000.
This is very promising news for homeowners since prices are not expected to rise past inflation, and with a large majority living in negative equity after the recession this will give them hope.
The high cost of a home has had a domino effect on the rental market as many more people cannot afford to get themselves on the property ladder.
This does not mean the renting is any easier, as a report from LSL Property Services has shown that rents have also reached a record high. A typical tenant pays around £705 a month, the report says.
Renting is a problem
Renting has become so difficult at the minute because while pay is frozen or is raised by a token amount, the cost of rent is increasing at a much faster pace and so many renting will not be able to afford the cost of renting.
Parents are also becoming increasingly involved with their children and helping them through this tough global struggle. Mums and Dads around the country are not lending money to their kids but instead are putting down deposits for their first homes.
“Rents are on an upward trajectory,” said David Newes of LSL.
“It is unlikely that tenants will gain respite any time soon,” he continued. “Demand from thousands of frustrated buyers each month is underpinning buoyant competition for rental homes, enabling landlords to increase prices.”