Estate Agent Boards Outside Houses

House prices in the UK are likely to rise by as much as 50% over the next 10 years, according to the trade body for estate and letting agents.

The National Association of Estate Agents and the Association of Rental Letting Agents has forecast the average price for a house in the UK will rise from £280,000 to £419,000 by 2025. Prices in London will nearly double to £931,000.

Rental costs are expected to rise by around 27%, meaning the average weekly rent will increase from £134 to £171.

Mark Hayward of the National Association of Estate Agents (NAEA) said: "House prices are only going to go one way, and unfortunately that is up.

"For so many already priced out of the market, this is news aspiring house buyers will not want to hear.

"Ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and a shortage of affordable housing, means owning a home will continue to be distant dream for many."

The forecast is based on the rises seen in the past 10 years continuing or increasing. Prices are expected to rise by 4.1% a year across the UK and 6.3% in London.