The house pricing gap between the cheapest and the most expensive homes average house prices for England and Wales grew to more than £350,000 in January according to the data from the Land Registry. In London the average house price for the first month of the year was £458,283 while in the North East of England the average was £97,974. Property prices increased by 1.3% on the average from December 2014. The annual increase was 6.7% with each region seeing an increase.

Overall, the average property price in England and Wales amounted to £179,492.

Business Secretary Vince Cable refers to the divide in house prices as an unhealthy situation. It makes it hard for people to move to other regions for job opportunities and it makes it hard for the younger generation to climb onto the property ladder. According to the English Housing Survey, in 2003-2004 59% of owned properties were occupied by 25-34 year olds, while only 10 years later that same age group amounted 36%.

Mr. Cable remarked, “A generational gap has opened up in a spectacular and worrying way.

“We are only seeing the first stage of the problem. If it continues for 20 to 30 years, we will be in a position that older people cannot cover living costs and rent. We will have a massive housing benefit bubble waiting to burst.”

House builders are being encouraged to use available technology to build homes that are more affordable and to build them faster. A £22m grant is available for those that build pre-manufactured homes that are made off site and built together on site in a speedy and efficient manner.

Mortgage and remortgage deals are very attractive, but lending has tightened. The solution for some borrowers may be to consider a broker. They can be helpful in knowing which lenders best match a borrower’s needs. They also have access to deals that are not offered directly from lenders to consumers, which could make the remortgage or mortgage opportunity be less lengthy or stressful as well.