18th February 2010
Nearly three-quarters of families under 40 in England cannot
afford to get on the housing ladder, according to research by a
Government housing advisory body.
Analysis by the National Housing and Planning Advice Unit
(NPHAU) showed just 26.1% of young families could afford to buy a
suitable home, with the figure as low as 5% in parts of the South
East and London.
The research also showed the average deposit for first-time
buyers has rocketed from 16% of annual income in 2000 to 64% in
2009.
The study concluded: "During the past decade there has been
deterioration in the affordability of home ownership."
Affordability varied dramatically across England, the study
found. In London as a whole just 9.9% of young families could get
on the housing ladder compared to 35.3% in the most affordable
region - the East Midlands.
The next most affordable areas were the North East (35.1%),
North West (33.3%) and Yorkshire and Humber (33%).
The South West (21.4%) and the South East (23.8%) were the least
affordable regions after London. Particularly in Brighton where
only 5% of young families could afford to buy with Christchurch in
Dorset (7.5%), Oxford (8.1%), Worthing in West Sussex (10.1%) and
Bournemouth (10.4%) also having low rates.
Shadow housing minister Grant Shapps said
the figures reflected a "complete and utter failure" of Labour's
housing policies.
The Conservative party were quick to attack Labour for so many
young families being priced out of a home.
Shadow housing minister Grant Shapps said the figures reflected
a "complete and utter failure" of Labour's housing policies.
"Thanks to Gordon Brown, three out of four young families have
been kicked off the first run of the housing ladder, urged on by
Labour ministers who want to attack the aspiration of home
ownership," said Shapps.
"Only Conservatives will provide a helping hand for people to
own their home, starting off with cutting stamp duty for first-time
buyers."
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