The cost of buying a home for first time buyers has risen by 250 per cent in the past ten years according to the annual Roof Affordability Index which was published yesterday.
Published by the housing charity Shelter the ROOF affordability index is widely seen as the most comprehensive yearly study on house affordability.
The latest report shows the average first time property price has risen from £73,962 to £258,756 with the ratio between property prices to incomes has also rising from 1.98 to 4.30.
According to the report Londoners are facing an even harder challenge to get onto the property ladder with the London figure higher than the national average of 200 per cent.
Shelter’s Regional Manager for London and the South East, Lynn Hannah said: “These new figures show in full the true and worsening situation first time buyers in London find themselves in. Every year the gulf between what first time buyers can afford and the cost of housing is widening.”
“Despite falling house prices, many lenders are increasing their mortgage rates, making an already desperate situation worse. It means there is a generation of young people and young families being locked out of the housing market without a hope of ever sharing in the asset wealth of the generation before.”