Lack of housing stock blamed for price growth

Lack of housing stock blamed for South-East price growth

The average price of a property in the south-east is expected to rise to over £322,000 by 2011, according to a new study. Research from the Housing Federation indicates that a shortage of housing stock in the region means that property prices will continue to soar over the coming years. The study has also revealed that the number of houses available to rent has dropped by almost a third in six years.

Earlier this month, the Association of Residential Letting Agents (Arla) reported that tenant demand in London is easily outstripping supply. According to Arla, more than six in ten agents have spoken of excessive demand in the capital. Derek Cash, from the Housing Federation, said: "Many more affordable homes are urgently needed to avert the south-east's growing housing crisis. "The lack of sufficient housing supply is pushing house prices up more and more, putting a huge strain on the existing affordable housing stock." According to the Housing Federation, house prices in the south-east are now nine or ten times as much as earnings.