Barnet house prices soar

5:34pm Thursday 26th October 2006

House prices in Barnet have increased by almost 60 per cent in the past five years - 20 per cent more than salaries, according to figures released on Tuesday.

The statistics, compiled by the London Housing Federation (LHF), reveal that the average cost of a home in Barnet is now £321,119, with the average income at £33,380. The federation, which represents London's 400 housing associations, warns that the increase in property prices is due to grow at a much faster rate than salaries in the coming years, making homes in the borough even more unaffordable Berwyn Kinsey, head of the LHF, said: "London is facing a housing timebomb. House prices, already sky-high, are expected to rocket by another £100,000 over the next five years, making it even harder for people to get on the housing ladder.

"Londoners are increasingly left with the choice of expensive rented accommodation, living in house shares or with parents, or leaving the capital altogether. Many thousands more are homeless or living in overcrowded conditions as demand for affordable housing outstrips supply."

Jeremy Leaf, national housing spokesman for the Royal Institution for Chartered Surveyors and an estate agent with offices in North Finchley and East Finchley, was not surprised by the figures, and said Barnet was a victim of its own success.

"These figures are concerning but merely reflect what has been happening in the borough of Barnet over a number of years. Barnet has many advantages, such as education, open space, quality and range of shopping, leisure and transport facilities, and they have become apparent to homebuyers compared with other areas."

The federation's study also found that 13,627 people in Barnet are on waiting lists for affordable housing, with an additional 2,334 people living in temporary housing.

A Barnet Council spokesman said it had been working hard to tackle homelessness and provide a range of housing options, as well as implementing ways to increase home ownership.

"The major regeneration of four housing estates, and our work with private sector partners on other sites in the borough, will bring 16,000 new homes to the borough by 2016, up to 50 per cent of which will be affordable," he explained.

"We are working closely with developers to make a range of low cost home ownership options available. "These include both shared ownership of properties and homes sold at a discounted price."

He added that from the start of next year, the council would be piloting the Social Homebuy scheme, which would enable council tenants to buy a share in their existing home, on a similar basis to existing shared ownership schemes.

The figures were compiled from 21 different sources, including government housing and salary data.

A housing market forecast, commissioned by the Federation from Oxford Economic Forecasting, predicts that house prices across London will rise by a further 34 per cent by 2011.