Debt helping to make it harder to get a home

According to the Alliance Trust, London house prices are 4.4 times the average annual income compared to 2.6 times in 1970, while the existence of student loans and easier credit means that many FTBs have large debts.

Shona Dobbie, head of the Alliance Trust research centre, said that the “key ratios have worsened for first-time buyers across the board but there are notable differences among regions”.

“These figures clearly show it is becoming harder for first-time buyers to break into the housing market,” she added.

Ms Dobbie added that there were several pressures for people looking to save for a home as other factors make it harder to gather a deposit.

Advice on becoming debt free can help people save up enough for the deposit in the face of bills and loans and could give crucial information relevant to a debt management plan.