House prices will keep on rising

Posted: 26 Oct 2007 10:05:56 GMT

It will take more than the proposed building of three million new homes to bring down property prices in England.

It will take more than the proposed building of three million new homes to bring down property prices in England.

That is according to a new report by the National Housing and Planning Advice Unit which wants an additional 270,000 properties to be constructed.

There is currently a shortfall of homes in the country and the group says that its proposal for more properties is not unrealistic.

"If you'd like to put this sort of thing into perspective we built more than that number back in the 1930s in Britain when we had a considerably smaller population," the report's co-author professor Stephen Nickell told the BBC.

"And most other countries in the developed world, proportionately speaking, build houses at a faster rate than we do," he continued.

The report pointed out that house prices will continue to rise but this could damage affordability in the coming years.

It was recently revealed by Birmingham Midshires that 62 per cent of Britons are confident that house prices will continue to rise.

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