First Time Buyers Need Salary of £63,000
14 April 2016, 06:19 | Updated: 14 April 2016, 06:23
A report from the housing charity Shelter shows house prices in both counties have grown at nearly seven times the rate of wages.
The research looked at the salary and deposit needed for the average first time buyer today, and calculated what they would be in 2020 if they grew in line with projected increases in house prices.
These figures come as no surprise given that, over the last five years, the region’s severe housing shortage has seen house prices rise five times faster than wages.
As the Government’s Housing Bill passes through the House of Lords, Shelter is warning that, unless the government commits to building homes that people on ordinary incomes can actually afford, the situation is only likely to get worse.
Campbell Robb, Shelter’s Chief Executive, said: “When house prices are increasing five times faster than the average wage, it’s no wonder people on ordinary incomes are being locked out of a home of their own.
“With the situation only set to get worse, Generation Rent will be forced to resign themselves to a life in expensive, unstable private renting, and wave goodbye to their dreams of a home to put down roots in.
“It doesn’t have to be like this. The Government has the power to turn our housing crisis around, but only if they stop with schemes like Starter Homes which only help higher earners, and start investing in homes that people on ordinary incomes can actually afford to live in.”