John Charcol senior technical director Ray Boulger has attacked a Government report warning that house prices will be 10 times average incomes by 2026.
The report from the National Housing and Planning Advice Unit, a Government agency launched last week, predicts that only 40 per cent of people between 30 and 34 will be able to afford a home by 2026 compared with 57 per cent today.
It says the Government’s aim for a total of 190,000 new homes a year is not enough as an estimated 223,000 new households are created each year.
But Boulger says: “To talk about house prices being 10 times more than a person’s wage is unrealistic. If the idea of the report is to shock people and the Government, that is fine but I am surprised if they are serious about it.
“Things will happen in the market to stop that happening. We are already getting to a stage when house prices will soon slow down. The market will adjust before we get to the stage they are talking about. We need more than 225,000 households a year. The Government has said it will boost new builds from 170,000 to 200,000 but this demonstrates it is not giving it enough attention. We need to create around 250,000 houses.”