Problem of housing affordability 'magnified in the capital'

Posted: 15 Apr 2010 10:12:33 GMT

While house price affordability is an issue for potential first-time buyers all over the country, it is somewhat magnified in the capital, one expert has argued.

Katy John, spokesperson for PricedOut.org.uk, says the problem is made worse by this group of would-be homeowners, who are having to compete with buy-to-let landlords who are currently snapping up 70 per cent of new build properties in London.

"Having a whole generation of young people permanently priced out of the housing market will be bad for individuals and for communities," she advises.

Ms John's comments come in response to a recent YouGov study, commissioned by the National Housing Federation, which found that 54 per cent of young people living in the nation's capital city expect to have to wait at least ten years before getting a foot onto the property ladder.

According to Ms John, the average value of a home in London currently stands at £333,394 - a price which she suggests will make it difficult for even high earners and couples to afford.

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