Buying one's first home is 230% less affordable than it was in 1996, so says Rics.
The Royal Institution of Chartered Surveyors (Rics) study shows that property became 13.8% less affordable in 2006 as interest rates and house prices went up.
It is now more difficult to get onto the property ladder since 1980, when interest rates were 17%, at their highest since the Bank of England was established in 1694.
Increasing house prices have resulted in a property glass ceiling for the majority of first time buyers .
At present house prices, a first time buyer couple need to save 82% of their joint salaries to pay the £32,784 needed for a deposit and stamp duty on an average home.
In 1996 the average couple had to save only 25% of their joint income.
Once on that property ladder, an average two-person household forks out 22% of their income meeting mortgage payments, a figure that was 13.5% in 1996.
Given that couples need 82% of joint take home income to fund buying a typical home, the government has not scucceeded in creating an inclusive society.
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First Homes 230 Per Cent Less Affordable than 1996
Fri, 12 Jan 2007
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