Home affordability worsens.

06/02/2008 by Dave.

The cost of becoming a homeowner in Britain has worsened by 351 per cent since 1996, it has been claimed.

According to an accessibility index compiled by the Royal Institution of Chartered Surveyors (Rics), a first-time buyer couple with lower quartile earnings will have to save 104 per cent of their joint pay to reach the £27,729 required for a deposit.

Slight reductions in loan to value (LTV) ratios as well as the continued burden of stamp duty have contributed to the worsening affordability, Rics claims.

London is still the most difficult place for a couple to get into the property market as couples in the capital must save over 100 per cent of their salary to get on the ladder.

David Stubbs, senior economist at Rics, said: “At the start of 2008, first-time buyers are finding it even harder to get a foothold on the housing ladder and the signs are that conditions are unlikely to get better in the short term. Mortgage lenders are demanding ever higher deposits as the credit crunch continues to take effect

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