Housing market becomes 'less accessible' for first time buyers

11-Jan-2007

The housing market for first time buyers has worsened significantly since 1996, new data suggests.

According to the accessibility index developed by the Royal Institution of Chartered Surveyors (Rics), the cost of purchasing a new home for first time buyers deteriorated by 13.8 per cent last year.

Since 1996, the prospects for first time buyers has deteriorated by nearly 230 per cent.

"Spiralling house prices have created a property glass ceiling for many first time buyers," said David Stubbs, a senior economist for Rics.

"With couples needing nearly 82 per cent of joint take home income to fund the upfront buying costs of a typical home, the government's plans to create an inclusive society seem like a pipe dream," he added.

Indeed, the average deposit needed to purchase a property has risen to over £32,000, equivalent to nearly 82 per cent of an average first time buyer's joint salary, Rics claims.

Established 136 years ago, Rics is a UK-based multinational organisation with around 120,000 members worldwide.

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