Households to grow faster than expected

A growth in the number of people living alone is set to push up the number of households in England by even more than previously thought, according to new government figures, which could see house prices rising even more.



New statistics predict that the number of households will rise by 223,000 per year between 2004 and 2026, with the north and the Midlands set to see even higher rates of growth.

The main reason for the increase is thought to be the continued rise in the number of single person households, which will account for 70 per cent of the growth.

More than a third of these one person households will be over 65 years old, reflecting an ageing population and growing life expectancy, the government stated.

The figures are an increase on previous projections released last year which predicted the number of households would rise by 209,000 a year between 2003 and 2026.

David Stubbs, senior economist at the Royal Institution of Chartered Surveyors, said that house prices could be pushed up if demand is not met by enough new houses being built - potentially good news for buy-to-let investors.

Mr Stubbs said: "Today's projections forecast even faster growth in the number of households in England over the next 20 years than was previously predicted. Action is needed now to ensure this new demand will be met by increased supply in the number of homes built in this country."

Rise in unaffordable towns for key workers

Around 70 per cent of UK towns are now unaffordable for key workers to buy a house in, a new report claims.

The report from Halifax looked at the average house price in British towns compared with the typical wages for five types of key worker - nurses, teachers, police officers, paramedics and firefighters.

In March, the average house price was unaffordable for all five key worker occupations in 70 per cent of British towns, an increase from 65 per cent of towns at the same time last year.

Five years ago, the average house price was unaffordable for key workers in 36 per cent of towns.

Tim Crawford, group economist at Halifax, said that housing affordability continued to deteriorate for key workers across Britain and that it was now clearly not a problem confined to the south of England.

He commented: "Nurses face the most difficulties climbing onto the housing ladder but all key worker occupations are likely to struggle to purchase a house apart from in Scotland."

According to one expert, business editor at Moneyfacts Lee Tilcock, the inability to afford to buy their own property, as well as a preference for the flexible lifestyle of renting, will mean that renting a home remains popular among many Britons.

Foreign investors 'seeking stability of UK property market'

The number of foreign investors putting their money into the UK housing market has increased "dramatically" over the past four to five years, experts have claimed.

Managing director of 1st Property Investment Andy Smith said that buyers from countries such as Ireland and South Africa are increasingly choosing to become property investors in Britain rather than in their own countries.

Among the factors attracting investors to UK property is the limited land mass, which "compacts" prices and ensures that they move upwards, he explained.

The market's low risk is also a factor, Mr Smith said, as well as its stability.

He added that as the UK had one of the "[most] robust legal systems in the world" there were not the same issues surrounding buyers purchasing property which is later demolished due to lack of planning consent, which are faced by investors in many overseas markets.

He commented: "There is no contesting of title when you purchase. And because of that, a lot of people from abroad are finding it a far more stable market to invest in."

Around one in five of those planning to purchase a home in the UK in 2007 will be doing so as an investment, earlier research from Birmingham Midshires revealed.

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