Middle earners forced off property ladder

Continuing property growth will push prices beyond the reach of low to middle earners next year.

2016 will prove a growing struggle for those trying to get on the property ladder.

Mark Hayward, managing director of the National Association of Estate Agents (NAEA), said first-time buyers will also face a challenging year.

“Next year we will see a growing, with house prices further beyond the reach of low to middle earners and rent costs eating away at more of their income.”

Hayward said that first-time-buyers must remain at the top of the Government’s agenda to help them get a foot on the housing ladder.

“If the supply of affordable housing doesn’t significantly increase in 2016, they will continue to feel driven out of the market.”

Hayward said supply and demand will be the key issue.

“Osborne’s announcement that he’ll be building 200,000 new-starter-homes is a good place to start, but it’s not enough to solve the worsening crisis. 

“We are at risk of doing too little too late. We are still waiting to see new homes being built, and whilst we wait, house prices continue to rise.”

Hayward said areas outside London will continue to grow in popularity, in particular ‘Teflon towns’ such as Oxford, Bristol, Cambridge and Bath.

“These are becoming increasingly attractive and popular, regardless of market conditions.

“These towns are intrinsically attractive, and favoured by those moving out of London – whilst central London plateaus as a result of the astronomical prices.”