NHPAU launched on June 7 and published its first report, Affordability matters, highlighting increasing affordability problems in the housing market. The report forecast that by 2026 the cheapest 25% of houses will cost ten times the average earnings of the poorest 25% of people. Professor Stephen Nickell, chairman of NHPAU, said: “The forecast is of course uncertain but given the current conditions the probability is that the market will go up quite a bit more.” Nickell added that this would only increase the divide between those who own a home and those who do not. <br><br>“While homeowners have found the dramatic increases in house prices in recent years a source of comfort and collateral, those outside the magic circle of home ownership experience increasing frustration as homes become less and less affordable.” The unit was set up in response to one of Kate Barker’s recommendations in her report on the housing market. It is designed to help regional assemblies and councils by analysing how housebuilding can best improve affordability. <br>