House prices will rise 50 per cent

House prices will rise 50 per cent to an average of more than £400,000 within the next 10 years, according to a new forecast.

It means buyers will need a £100,000 deposit if they want to secure the more attractive mortgage rates for those with a larger deposit - and be earning an annual salary of almost £70,000.

The housing report suggests average prices will rise from their current level of £280,000 to £419,000 by 2025. For those in London, values will increase from £515,000 today to almost £1m at £931,000.