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NHF: UK set for bright future
The National Housing Federation has made a stunning prediction about the future of UK house prices.
In a new report, the NHF predicted that average house prices in England will rise by 25% by 2013. It sees prices falling 4.4% in 2008, 2.1% lower in 2009, recovering by 2010 and rising at over 9% in 2012 and 2013.
People living for longer, delaying marriage and getting divorced more were all adding to demand for homes.
While there are questions over how accurate five-year forecasts can be, there is a general concern that new homes being built will not meet demand.
The Federation's chief executive David Orr explained: "As soon as the economic outlook improves, house prices will resume their previous upward trajectory.
The Federation, which represents housing associations in England, predicts that rising demand and falling supply will push the cost of the average home in England to £274,700 in 2013.
Mr Orr added: "People are living longer, they're delaying getting married and they're more likely to get divorced - meaning that we now have more households than ever.
"Only 75% of the new homes needed were being built each year, which was also hitting the availability of affordable homes".
The NHF's prediction conflicts with many other analysts, who forecast a much slower rate of house price inflation over the next five years.
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