Capital's soaring house prices mean first time buyers spend £140k more for a home
03-06-2015
Photo: PA
First time buyers in London are paying an extra £140,000 compared to what they would be paying if house prices had risen in line with income.
The charity, Shelter, says that if the average income of a first time buyer and average house prices had remained in line with each other, first time buyers would be paying 42% less for their first home.
Shelter is warning that with average house prices in London now almost fifteen times the average wage, compared to just seven times fifteen years ago, aspiring homeowners on ordinary incomes have little hope of covering the extra cost.
Sarah and her husband live with their young daughter, and worry they might never be able to afford a home of their own.
We really want to buy a place of our own to build our lives in, especially as our daughter grows up. By the time we pay the rent and bills every month we barely have anything left over.
It's so disheartening to think we might never be able to give [our daughter] a stable home to grow up in.
– Sarah, aspiring first time buyer
Battersea Power Station
House prices in London continue to rise Credit: PA
Shelter is warning that unless politicians get serious about building affordable homes, an entire generation will be priced out of a home of their own.
Millions of young people and families are facing a lifetime in expensive private renting, or stuck in their childhood bedrooms well into adulthood.
Politicians of all parties need to stop announcing piecemeal schemes and commit to ending the housing shortage once and for all.
We need a big bold plan that will fix our broken house-building market for the long term.
– Campbell Robb, Shelter Chief Executive
Recent government statistics show that home ownership overall has dropped to its lowest level since the mid 1980s.