Gap between house price rises and salary increases accelerates

Gap between house price rises and salary increases accelerates

New research shows that house prices increased at more than three times the rate of wage increases between 2001 and 2011.
The discrepancy is being blamed for stopping thousands of would-be homeowners from getting a mortgage and for pushing up the price of rents.
With essential living costs such as gas and electricity, food prices and fuel rising during the decade, tenants have found it increasingly difficult to save the higher deposits needed to get onto the property ladder.
The National Housing Federation (NHF) research shows that the average property in the UK increased in value by 94 per cent over the decade, with wage increases lagging behind, showing an increase of just 29 per cent.
It reveals that getting onto the property ladder is becoming a “pipedream” for hundreds of thousands of aspiring homeowners in the UK as a shortage of affordable housing, rising property values, low wage increases and difficulties in raising a deposit to get a mortgage blight the hopes of potential homeowners.