Average House Price Could be £300k By 2012

The cost of an average home in England is set to soar by 40% during the coming five years, to break through the £300,000 barrier by 2012, a report has warned.The National Housing Federation (NHF) has indicated prices are now almost 11 times the average wage and may rise by 40% as supplies fall further behind demand.

But despite its predictions, the NHF maintains a house price crash is unlikely.

The NHF says house prices have risen by 156% since labour came to power in 1997.During the same period average incomes have gone up by just 35%.Social housing waiting lists have grown by 57% during the past five years to 1.6 million households.

The NHF says its study reinforced the need for ministers to act on their recent pledge to build an additional three million homes by 2020.

Federation Chief Executive David Orr said: "Our report shows a growing number of parents will find themselves subsidising their sons' and daughters' mortgages...Across the country, more and more people are going to find themselves priced out of the property market."

2012 HOUSE PRICE FORECAST*

North East - £187,200(£143,800)

North West -£204,400 (£157,700)

Yorks & Humber - £211,000 (£159,400)

East Midlands - £236,300 (£166,300)

West Midlands - £236,700 (£175,400)

East - £340,200 (£224,200)

London - £478,300 (£322,500)

South East - £392,900 (£259,700)

South West - £316,300 (£219,400)

*Source: Oxford Economics; current average property price in brackets