With property prices in the UK soaring and interest rates continuing to go up many UK consumers that were hoping to get onto the property ladder face a bleak future. And according to recent data the problem is set to get worse, as future property purchasers may be looking at property prices that are ten times their salary, which for many means that there is no chance of being able to afford their own property.
Seven years ago, according to the data, house prices were on average around four times the amount of the average salary. However, with the prospect of prices that are ten times the average salary looming, officials state that it is vital that many new homes are built in order to make the prospect of affordable property purchasing more viable for the younger generation. The research was carried out by the National Housing and Planning Advice Unit (NHPAU).
Survey results suggest that over one third of non homeowners in the UK feel that they will now never be able to get onto the property ladder because of the soaring prices of properties compared with the rise in earnings. A fifth of non homeowners estimated that they would have to wait around five years before they would be able to afford to get onto the property ladder.
The National Housing and Planning Advice Unit (NHPAU) aims to provide advice on improving affordability for future homebuyers. One official from the agency stated: ‘First-time buyers have seen a big rise in the deposit needed to buy a home and the amount of their income spent on mortgages. Demand for housing is growing and unless action is taken, pressure on the market will only get worse.’
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