UK housing prices to rise 40 per cent in the next 7 years

UK housing prices to rise 40 per cent in the next 7 yearsAccording to a new report released, the housing prices in the UK are expected to rise by about 40 per cent during the coming seven years making difficult for the so-called `Millennium baby boomers' to buy their first property.

The increase in prices will be mainly due to the failure to build enough houses in the country to cater to the growing demand for property. The report said that the young people will struggle with rising housing prices and increased rentals in the country. The reports said that more than 3.7million under the age of 35 will be living with their parents.

The report released by the National Housing Federation said that the housing market is expected to get tougher for the people due to an increase in the post-2000 birth rate. The birth rate rose 22 per cent rise to 6.9million births between 2001 and 2011 compared to the previous decade. The builders built only 1.6million new homes during this period, creating a shortage for in the market.

Ruth Davison, the NHF's campaigns director said that this shortage in housing supply would increase the prices of the houses in the country.