Qualified advisers answering your
Financial Questions
call 0800 092 1245

Young people priced out of housing market

New research shows that as many as a quarter of young people have been priced out of the housing market.A study by Hometrack found that the average house now costs more than five times the average first-time buyer's income, relegating many young people to rented accommodation.Hometrack's director of research, Richard Donnell, commented on the findings: "The affordability problems highlighted in this research are largely a result of an unbalanced and inflexible supply of homes which has led to high entry costs for housing."While the government has recently set out new targets for house building this research highlights the importance of developing the right type of housing in the right forms of tenure."The company claims that while residential property prices have tripled since 1994 - way over the rate at which wages have increased - private sector rents stayed more in line with salaries and hence are the only affordable option for many people.Mr Donnell added: "The private rented sector is taking much of the strain and while the rental market has grown in recent years, it is clear this growth needs to be sustained to ensure adequate housing choice for those priced out of the market."

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details