The Office of the Deputy Prime Minister has said that only three in ten of today's ten year olds will be able to afford their own homes unless house building increases. Their projections are based on analysis undertaken as part of the government's response to the Barker Review, which is due to be published later this year.
The analysis shows that building more homes can reduce pressure on prices and help more families afford their own homes. The government also says that affordability is becoming 'a threat to social mobility', as figures show that 23% of first time buyers now rely on gifts and family loans for deposits compared with only 4%, 25 years ago.
The Barker Review showed Britain has not been building enough homes to meet rising demand for several decades and the result has been increasing house prices and growing problems of affordability.
Over the past 30 years the number of households has increased by 30%, but the level of building has fallen by over 50%.
Our view
We are a small island with many people clinging to its sides as population expands and more people over the water trying to come here. Is it any wonder that land and homes are so expensive?
An economic bubble waiting to burst? We think not. Search the archives for more on property.