Home.co.uk
Home.co.uk

News: 8 in 10 UK homes beyond the reach of first time buyer families

Wed, 29 Apr 15


Fiona, a lecturer in Colchester, is a married mother of three.

"I’ve always wanted a stable home for my family, but despite my husband and I both working in decent, professional jobs, house prices are way too high for us to even dream of being able to afford a home of our own," she says.

"I feel completely resigned to never getting on the property ladder."

Her experience, though, is far from unique, as new research from Shelter reveals that more than 80 per cent of homes for sale in the UK are beyond the reach of families looking to buy their first home.

The housing charity analysed asking prices for thousands of properties for sale throughout the country and compared them with the mortgage that an average family buying their first home could afford. The research revealed that across the country only 17 per cent of homes for sale are affordable for families that need at least two bedrooms, and only 7 per cent are affordable for larger families looking for homes with three bedrooms or more.

"Decades of failing to deliver the homes we need is leaving millions trapped in expensive and unstable private renting, or in their childhood bedrooms, with barely a hope of saving for a home of their own," says Campbell Robb, Chief Executive of Shelter. "It’s no wonder that a week out from election day, affordable housing is a key concern for those heading to the polling booths."

Indeed, with construction output in the UK falling in the first quarter of 2015, political parties are placing a growing emphasis on building new homes in their manifestos for the May general election.

Additional research from the charity found that voters are likely to consider a pledge to build affordable homes among their top priorities when casting their vote.
 
With an ongoing shortage of housing supply, though, asking prices are rising once more in the UK, hitting a record high in April 2015, according to Rightmove. Despite high LTV mortgage accessibility and a growing range of mortgage products on the market, Shelter’s study found that in 10 per cent of local authorities, there are no homes for sale that are affordable for families earning a typical wage. Such areas include Chelmsford and Watford in the East of England, and Gravesham and Elmbridge in the South East. 
 
In London, the charity identified just 43 affordable properties for sale, including house boats and a mobile home.
 
"Politicians need to act swiftly to deliver the plan that will build the 250,000 homes a year we need, or millions more people will be forced to kiss their dreams of a stable and affordable place to live goodbye," cautions Robb.

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