25% Of Young Working Households Could Be Priced Out Of Market

New research reveals that 24% of young working households are priced out of housing market and up to 50% are priced out in the worst affected areas.

Hometrack, the housing intelligence business, report reveals that just under a quarter, 24.3%, of young working households have little chance of accessing home ownership in their local housing market. High house prices and rising interest rates are increasingly limiting access to the housing market with some of the worst affected areas in the South West of England. The research also sets out new analysis that highlights how the cost of renting is cheaper than buying.

The report also analyses house price to household income ratios based on the average price of a 2/3 bedroom home. At a regional level it shows the highest ratio is in London (5.08:1) closely followed by the SouthWest (4.84:1) and the South East (4.67:1). At a local level, the analysis reveals that there are forty areas with a house price to income ratio higher than 5.50:1. The least affordable authority is identified as Kensington & Chelsea, with a house price to household income ratio of 9.23:1.

Click here for the full report.