Homes are 'increasingly' out of reach for first time buyers

05-Dec-2006

First time buyers are finding it increasingly difficult to get a place on the housing ladder, as properties move out of reach, a study suggests.

According to research by the Joseph Rowntree Foundation, around 40 per cent of first time buying professionals are not earning enough to buy for the first time, despite average salaries reaching nearly £26,000 per household.

"It is worse than it has ever been and the most acute affordability problems are in the south-west, not the south-east," said Steve Wilcox, a professor at the centre for housing policy at the University of York.

"This is because of the demand for holiday homes - which has driven up prices - and because folk are retiring there," he added.

The survey found varying regional disparities between the average first time buyer income and house prices.

Average house prices in Chelsea, west London, are nearly £700,000 for a two-bedroom flat, while in Carmarthen, Wales, a first time buyer can purchase a two-bedroom mid-terrace house for around £130,000.

The Joseph Rowntree Foundation is a UK-based charity, specialising in social policy development and research.

As the market for first time buyers toughens, new companies are offering new services to help first time buyers buy new properties by working with the house-builders.

First time buyers concerned about how an increase in interest rates might effect how much they would have to pay each month should consult a good broker.

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