Rising House Prices

House prices in the UK have risen by 199% since 1995/1996 (see: http://www.ukpropertyshop.co.uk/news/373.shtml) and rose by 5.43 percent in 2006 alone, far outstripping the rate of inflation. Of the ten most expensive areas to buy property in the UK, the “cheapest” (Bath and North East Somerset) had an average house price of £253,364.
This means that it is becoming increasingly difficult for people to get on the first rung of the property ladder.

With the average UK salary now standing at £22,500, it is impossible for people to get mortgages to cover the cost of buying a house. In 2001, 40% of under 30 households were buying with a mortgage and 33% were renting privately. By 2006, the situation had changed with 34% buying and 41% renting.

It is also interesting to note that the property in 236 postal codes in the UK have an average price at such a level that they are above inheritance tax levels compared with 117 postal codes just five years ago. This means plenty of paydays for the government when their owners die.