Market Plateau for the next Seven years

Property prices may remain static for some years to come, while the market waits for first-time buyers' incomes to rise, according to Rightmove.

Property prices have been slowly grinding to a halt, due to a lack of demand for property at current prices. Now the property website claims that if current trends continue, it would take seven years for the incomes of first-time buyers to rise enough for affordability levels to return to their long-term average.

However, if interest rates fell by 1% and current levels of wage rises continued, this time could be reduced to just four years.

Miles Shipside, commercial director of Rightmove, said: "As many sellers are refusing to part with gains they have made, buyers are forced to make up the affordability gap.

"The reality is it will take seven years of static house prices and wage inflation to bridge this affordability gap.

"In the meantime, we should expect lower sales volumes for several years as the market waits for buyers to play catch-up."

Wages grow faster than house prices

House prices are currently rising at a slower pace than people's wages, according to a survey of property asking prices.

The survey conducted by Rightmove revealed that annual house-price inflation fell to just 2.4% this month, which is well below the 4.6% annual increase in people's wages recorded by the Office for National Statistics last week.

At current asking prices most first-time buyers are not earning enough to afford their own home.

Miles Shipside, commercial director of Rightmove, said: "Having had it so good for many years, it's now payback time for the property market. As many sellers are refusing to part with gains they have made, buyers are forced to make up the affordability gap."

More British holidaymakers visiting err… Britain!

Rather than going abroad, more British holidaymakers are staying in the UK, opting for British seaside resorts in the north of Britain instead. Consequently the local housing market has benefited, according to research carried out by the Property Investor and Homebuyer Show North (this weekend, 24 - 26 June 2005, G-Mex Manchester).

The research, based on Land Registry figures, reveals that house prices in resorts such as Bridlington and Scarborough have seen growth almost double that of some southern towns over the last five years, with Brighton experiencing the slowest price growth. On average, northern resorts have seen price growth of 112.83% since 2000, whilst in the southern towns prices have risen by an average of 99.89%.

Blackpool Pleasure Beach's theme park is the most popular tourist attraction in the UK, with 6.8 million visitors in 2004, compared to 4.9 million for its nearest rival, the National Gallery in London.

Property Investor News who will be exhibiting at the Property Investor and Homebuyer Show North will be located at stand number 7.