House price affordability 'to go on falling'

The affordability of homes is on course to go on falling, it has been predicted.

A report by Professor Michael Ball, Professor of Urban and Property Economics at Reading University, on behalf of the Association of Residential Lettings Agents found that even if the supply of homes grows, the proportion of young people able to afford one will continue to decline.

He said that while at present 56 per cent of 30-34 year-olds will be able to afford a flat, this number will drop to 45 per cent by 2016 and 34 per cent by 2026.

The growth of this problem may prompt more people to look to self build their homes to overcome the situation.

Last week a report by the Royal Institution of Chartered Surveyors said that couples with lower-quartile incomes had to pay more than their annual joint net salary just to meet the upfront fees for a new home.