House price rises 'unavoidable'

NIMBYISM looks likely to scupper Government plans to cool the UK‘s rampant property market. A new poll from the House Builders Federation indicates that people agree Britain needs more homes but only if they are 'not in my back yard', the phrase that launched the now-familiar 'Nimby' name.

Up to 120,000 new homes are needed every year to cool the housing market, according to a Government review.

Economist Kate Barker's findings, unveiled in Gordon Brown's Budget in March, were widely accepted in the survey, with 72% of people agreeing Britain needs more homes. But nearly half, 48%, oppose building on their street.

If the new houses aren't built, a continuing boom is 'nearly inevitable', experts believe.

The new study, conducted by market research firm YouGov, found the figure rose to 59% among residents of villages or rural householders - and also among Tory voters.

Opposition falls once people believe the building will be further afield - 29% oppose building in their local area, dropping to 18% if it is the local region and 13% beyond that.

The study also revealed widespread concern about high house prices, with 67% describing them as a serious problem.

The HBF said the survey showed people were willing to accept building. 'All too often the debate about house building is dominated by a group of vocal, well-organised Nimbys. This poll shows how unrepresentative they can be,' said chief executive Rob Ashmead.

'More importantly, people want to address it - even when this means building new homes in their own area.'

He added: 'We need to move away from whether Britain needs more homes to how we provide them - in a rational, responsible and sustainable way that takes on board all the concerns that increased house building inevitably raises.'

Figures from the Office of the Deputy Prime Minister revealed 143,000 homes were built in the year to April 2004, up 4% on the previous year. Kate Barker‘s review concluded that 195,000 homes are needed each year to take UK annual house price rises, after inflation, down to 1.8%.

To bring it in line with the EU long-term average of 1.1%, a total of 245,000 would have to be built each year.

According to lenders, house prices have continued soaring despite the UK base rate rising from 3.5% to 4.25% in the past six months. The latest figures from the Halifax bank put the annual rise at 19%. Official Government figures put the rise at a more sedate 8%.

The boom has sparked a rally in the shares of housebuilders, although fears of a property market slump means bulging profits are yet to be fully reflected in the stocks, according to fund managers and analysts.

Bellway and Westbury have been among companies to recently reveal an impressive rise in earnings.