London house prices soar out of the reach of locals
04-12-2014
A study has shown 91% of home in London are now too expensive for locals to buy as the UK stands on the brink of an “affordability crisis”.
The research, conducted by property search engine Adzuna.co.uk, also showed nine in ten houses in Brighton, Oxford, Chelmsford and Cambridge were out of reach for locals.
The comparison of property prices and average local salaries showed that Belfast, Sunderland, Salford and Hull were the most affordable places for first-time buyers.
In these areas, average property prices were 2.5 times average local earnings compared with over seven times in the most expensive cities.
Adzuna co-founder Andrew Hunter said: "Despite government schemes like Help to Buy, it's clear that many parts of the country are on the verge of an affordability crisis, with young first-time buyers being almost completely priced out of the market."
Housing minister Kris Hopkins said: "Help to Buy is both helping people on to the housing ladder and getting more homes built - nearly 20,000 home-owners have bought through the schemes, leading developers have said they'll build more as a direct result of the scheme, and last year housebuilding rose by 23%.
"We've also taken action to reduce the record deficit we inherited, which has kept interest rates at a record low and made mortgages more affordable.
"On top of this, since 2010 the Government has helped deliver 170,000 new affordable homes, and we have a £20 billion investment programme in affordable housing up to 2015, and a further £23 billion after it."