House prices up in January but affordability still an issue
By Matthew West
House prices rose by 1.2 per cent in the first week of this year, according to the latest data from property website Rightmove.
The gain helped to reverse two consecutive monthly falls in prices. Rightmove said the price increase was driven by low levels of housing stock on the market.
But Rightmove's commercial director Miles Shipside predicted a tough year ahead for the property market suggesting forced sales would increase in 2010. Mr Shipside said house prices were unlikely to change in 2010, as early rises would be offset by falls following the general election.
He also admitted the figures came as a surprise. "We were expecting a drop of about 1 per cent, as the majority of this month's index falls in December, but the optimism of those early sellers flipped it around," he said.
"Low stock levels are normally associated with house price booms and prices would have fallen considerably further but for the unique combination of circumstances that has kept stock off the market."
The news came as the homeless charity Shelter published research which suggested people were delaying having children because of a lack of affordable housing.
The research reveals that 18% of 18-44 year olds, equivalent to 2.4 million people nationwide, are actively putting off having children because of high housing costs. This rises to 24% among 18-34 year olds.
Shelter commissioned a YouGov survey of 5,438 people in October 2009 to examine the extent to which unaffordable housing was affecting the way they lived.
One in five (22%) 18-44 year olds said they had waited for as long as six years to start a family, with over a third (37%) expecting housing costs to continue to delay their plans for another four years.
Kay Boycott, director of policy and campaigns at Shelter, said: "These figures show just how pervasive the housing crisis is. Whilst it is responsible to ensure that you can afford to support a new baby, it is completely unacceptable that housing costs are changing important life decisions like starting a family in such a significant way."
Shelter also said the average age of a first time buyer without financial help from family or friends was now 37 years old, up from 33 in 2005.
Ms Boycott added: "Housing affects so many areas of people's lives. In this election year, it's vital that all political parties make housing a top priority so that future generations can exercise choice in their family life.
Shelter has launched an online discussion forum for people to share their experiences of how housing costs are affecting their lives and is calling for a national debate over the lack of affordable housing in the UK.
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