HOUSE PRICES across the Vale could rocket by as much as 50 per cent over the next decade according to a new report.
The shock findings were revealed in a National Association of Estate Agents report which sets out what they believe housing market will look like by 2025.
If their findings are right it could mean the average property price in Evesham would jump from £202,463 in 2015 to £303,694 in just nine years, while current house prices in Pershore would climb from their current level of £253,136 to £379,704.
The cost of renting in Evesham could also rise by 27 per cent, meaning tenants will be forking out about £741 on average each month.
Tom Tarver, Director of Johnsons Property Consultants, has told the Observer ‘the basics’ were there and backed the reports findings.
“Robust economic growth, cheap borrowing, low unemployment and rising wages, together with an ongoing lack of supply, suggest that increasing house prices during 2016 are extremely likely,” Mr Tarver said.
“Beyond 2016, the outlook for the Evesham and Pershore markets remains strong.
“The basics are certainly in place to support the predictions of the Housing 2025 report and we should see substantial growth over the coming decade, notwithstanding any significant derailment of the economy.”
Evesham’s MP Nigel Huddleston told the Observer he was ‘sceptical’ of long term predictions, but understood there was an issue with the affordability of homes in the Vale.
“I don’t believe any house price projection beyond a couple of years has ever been accurate, so I am somewhat sceptical of long term forecasts, but there is definitely an issue with housing affordability locally,” Mr Huddleston said.
“House prices are higher than the UK average across Wychavon as a whole yet incomes are at the national average level, which means Wychavon is relatively unaffordable.
“House prices are always a double edged sword as those who own a home like to see the value of their assets increase, while those who don’t currently own a home suffer soaring rents or struggle to save for a down-payment.
Mr Huddleston also said the long term solution to counter rising house prices is the need to build more homes, whilst he also backs more house building as long as local infrastructure is supported.
“The longer term issue is one of supply and demand and in order to slow down house price increases we will inevitably need more housing,” he added.
“This is already happening, but there are also many understandable concerns about the scale and location of local house developments.
“I do support more house building, as long as it is on the right scale and in the appropriate locations with supporting local infrastructure being factored in,” he added.