Thursday, 7 June 2007

Mortgage madness: average house could cost 10 times annual pay

Ed: More evidence of Why Mortgages Matter.

The next generation of first-time buyers will face house prices equivalent to ten times their average incomes, putting home ownership out of reach for the majority of young people, a new government agency says today.

The average home in England currently costs seven times annual earnings, but that is set to rise to ten times by 2026 even if the Government succeeds in its aim of sharply increasing the rate of homebuilding, the analysis reveals.

Campaigners said that the developing crisis would “stop social mobility in its tracks”, and force young people to live in overcrowded conditions and take out ever-riskier mortgages. Read more

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