Homes shortage to push prices up 21.3%, says NHF

A chronic under-supply of homes is plunging the housing market into crisis, the National Housing Federation has warned.

An NHF study predicts home ownership in England will fall to 63.8% during the next decade the lowest level since the mid-1980s.

It says a scarcity of properties will result in steep price rises in the private rental sector, huge social housing waiting lists and a housing price boom.

NHF forecasts the average house price in England will increase 21.3% in the next five years, from £214,647 in 2011 to £260,304 in 2016.

Average monthly rents are predicted to rise 19.8% during the next five years, from an average of £486 in 2011 to £582 in 2016.