High house prices 'should be key issue for government'

Monday, 19 April 2010 09:51

By myfinances.co.uk staff

Improving the affordability of housing in the UK and London in particular should be a key issue for the next government and having young people excluded from the market will have damaging long-term effects on communities, an expert has warned.

Katy John of PricedOut.org.uk said that the problem of high house prices has been a growing concern for 18 to 30-year-olds for the past decade - and the issue is "magnified" in London.

The average home in the capital costs £333,394, she noted, meaning that even high earners struggle to get on the property ladder.

Furthermore, 70 per cent of new housing in London is snapped up by buy-to-let investors, making it hard for first-time buyers to compete in the market.

Her comments come after a YouGov survey for the National Housing Federation showed that 54 per cent of people aged 18 to 30 believe it will be at least ten years before they can afford to buy in London.

Another 37 per cent said that they are putting off starting a family until they own their own home, while 22 per cent are delaying getting married.

Ms John warned that unless affordability improves, increasing numbers of young people will leave the capital and indeed the country.

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