House prices will 'keep rising'

Many young people are getting priced out of the house market

People in the North West will face an average house price of almost £250,000 by 2011, according to a new report.

The National Housing Federation says home ownership will rise by 77% over the next six years and follows prices doubling to almost £140,000 since 2000.

As a result, the area's average house price is now nearly six-and-a-half times the average salary.

It said the price hikes have led to housing waiting lists and homelessness rising dramatically in the region.

The reports says the North West now has more homeless families than anywhere else outside London.

It says there are now more than 200,000 households waiting for affordable property.

Affordable housing

Less than one in ten newly-built houses are classed as affordable and the housing federation says more affordable homes are needed to help people onto the property ladder.

Malcolm Struthers, National Housing Federation spokesman said: "The recent and predicted rapid rise in house prices puts a huge financial strain on those looking to get a foot on the property ladder.

"As a result, this has a major social and economic impact on the North West.

"With homelessness and housing waiting lists rising so dramatically in the region, the Government must provide more affordable homes to tackle these major issues.

"It is vital that through the Comprehensive Spending Review 2007 the Government make housing a top priority for increased investment."