House prices will ‘outstrip wages’

Future generations of Britons are likely to face serious debt management pressures if they want to get onto the housing ladder as house prices are expected to outstrip wage increases in years to come.

A new study from the National Housing and Planning Advice Unit claims that unless millions of new homes are built around the country, first-time buyers will be obliged to take on a home loan that is as much as ten times their annual income.

Housing minister Yvette Cooper responded by saying: “This report does provide a further wake-up call to regional assemblies, particularly those in the south, and makes clear they need to raise their ambitions and build the homes the first-time buyers and families need.”

Mortgage borrowers around the country are already facing significant financial and
debt management pressures as a result of five rises in the cost of borrowing since August of last year.

Meanwhile, a recent report from homelessness charity Shelter showed that around one million Britons have used credit card debt to pay off mortgage repayment demands.