The price of an average house in England will top £300,000 within six years, according to the National Housing Federation. This represents a 50 per cent increase on current valuations, and is likely to make it even more difficult for first time buyers to afford a home, the federation said.

It is asking the Government to reform planning laws to speed up construction of affordable homes in mixed communities.

A separate survey from property website Rightmove this morning claims house prices increased in July at their fastest rate for five years. The survey shows the average house price rose by 2.9 per cent compared to June, and by 10.6 per cent year on year.

 

The National Housing Federation said that further boosts to property prices might be reassuring for owners who borrowed heavily to get on the housing ladder.

But the federation, representing 1,400 housing associations, warned that it "spells disaster for tomorrow's first time buyers who will find it increasingly difficult to afford a place of their own".

House prices are roaring ahead at the fastest rate for five years, according to Brittain's biggest property website. Figures from Rightmove, which advertises 70 per cent of all homes for sale in estate agents across the country.