Young people 'priced out of housing'

A large proportion of young working households are unable to buy homes because of affordability constraints, a new report has found.

The study carried out for housing website Hometrack by Professor Steve Wilcox of the University of York has revealed that 28 per cent households aged between 21 and 40 are held back in this way.

London and the south-west of England are the worst-affected parts of the country, with over 40 per cent unable to get on the ladder, while the least badly affected region is the north-east with 17 per cent finding homebuying out of their reach.

Some of those affected by such constraints may decide to examine the self build option as a potentially cheaper and affordable way to get on the ladder.

The issue of affordability has also been highlighted by a report on Wales.

A study by the Joseph Rowntree Foundation has found that house prices in rural areas are five times the average annual wage.

The report concluded that "there is a real danger that communities in parts of rural Wales will lose the next generation of young people" if the problem is not resolved.