Elmbridge in Surrey is the most difficult place in the South East to get a first step on the property ladder, new research from the National Housing Federation reveals today.
Chicester, Horsham and Winchester, closely follow as the top areas in the South East where average wages, house prices and limited ability to save for a deposit collide to price out would-be homeowners.
The research found that all local authorities in the South East except for three (Swale, Medway and Dover) have house prices that are over 10 times the average wages for first time buyers.
The National Housing Federation highlights that decades of successive governments failing to build enough homes has led demand for homes to far exceed supply, driving up house prices and causing home ownership to fall to a 29 year low.
In a YouGov poll the National Housing Federation found that an overwhelming 87 percent (almost nine in 10) 18-34 year olds say it is difficult for their generation to get on the housing ladder in Britain.
The National Housing Federation highlights that the current generation of aspiring first time buyers are considerably worse off than their parents were when it comes to their chances of being able to buy a home, due to successive Governments failing to build enough homes to keep up with demand. With demand for homes pushing prices up, average first-time buyers today need a £30,000 deposit, almost ten times the deposit required in the early 1980s in real terms.
Alistair Smythe, External Affairs Manager for the South East at the National Housing Federation, said:
“If the new Government doesn’t urgently address the chronic shortage of housing, young people and families will continue to be locked out of ever owning a home in future.
“Younger people in the South East, especially those whose parents can’t help financially, can find themselves stuck living in their childhood bedrooms or paying high private rents that make it almost impossible to find a home that is genuinely affordable.
“That’s why the National Housing Federation is backing the Homes for Britain campaign, calling on the new government to publish a long term plan to end the housing crisis, which addresses all aspects of the market, within its first year of office.”
Top 20 Most expensive places to become a first-time buyer in the South East
|Lowest quartile average house price||Lowest quartile average income||Affordability Ratio||Homes needed per year||Homes built in 2014||Homes shortfall|
|4. Mole Valley||£250,000||£13,438||18.6||421||110||311|
|6. South Bucks||£279,995||£15,358||18.2||339||110||229|
|11. Windsor and Maidenhead UA||£250,000||£14,772||16.9||730||490||240|
|12. East Hampshire||£207,500||£12,566||16.5||504||440||64|
|13. Rother||£148,000||£ 9,081||16.3||551||120||431|
|18. Epsom and Ewell||£242,000||£15,368||15.7||372||130||242|
|19. South Oxfordshire||£215,000||£13,755||15.6||391||470||–|
|20. Tonbridge and Malling||£187,500||£12,022||15.6||830||630||200|