House buyers 'paying 60 per cent more'

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House buyers 'paying 60 per cent more'

Fri 27th Oct 2006

Those attempting to step onto the property ladder are finding it 60 per cent more difficult than their parents, according to new research by Alliance Trust.

This is due to the ratio in rises of house prices to income being 60 per cent greater now than it was in 1970, meaning first-time buyers are finding it increasingly hard to finance moving into their first home.

London heads the ratio table, seeing a 66 per cent increase in house prices compared to income. East Anglia and the south-west closely follow England's capital in terms of rising house prices.

Shona Dobbie, head of the Alliance Trust Research Centre, said: "These figures clearly show it is becoming harder for first-time buyers to break into the housing market.

"In recent years, buy-to-let investors have taken on the traditional role of first-time buyers in keeping the market going, but you really need first-time buyers to sustain prices over the longer term. Our research shows how much pressure these new buyers are now under."

Alliance Trust was founded in 1888, is the largest generalist investment trust company in the UK and is listed on the London stock exchange.

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