Price of first time buyer house to soar 42% by 2020 warns report

House prices prices for first time buyer homes  in England will soar by 42% by 2020 claims a report.

The National Housing Federation warns of the "colossal strain" facing the generation born in the 1990 with rents tipped to rise an an even faster rate.

Many will remain trapped in their parents' homes as property prices continue to outstrip earnings, warns the NHF.
It predicts that 3.7 million young people will be living with their parents by 2020, as the rate of housebuilding fails to keep up with the rising population.

The NHF report states: "By 2020 the price of a first-time buyer's home will increase by 42% to £245,165. Although wages for 22- to 29-year-olds will increase by 36% by 2020, this poses a huge challenge for those wishing to be homeowners.
"Low-earning young people would have to spend 16 times their average wage just to buy a home."

Rents will be driven even higher as young adults are priced out of the property market.
 "NHF research shows that private rents are likely to be broadly stable through 2013, but could increase sharply, by about 6% a year, between 2015 and 2020 as interest rates and house prices rise. In 2020, rents are expected to be 46% higher than today.
"But when the new flood of young adults born in the noughties starts university or a new job, they could push rents even higher in a country already chronically short of decent housing."

This latest report follows a forecast from Savills last week that house prices prices in the UK would rise 18% by 2017.

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