Study: Homes out of reach for Britons

June 14, 2008 at 2:54 PM
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LONDON, June 14 (UPI) -- House prices will have to fall significantly before the average young Briton can afford to buy a new home in some parts of England and Wales, a study says.

Even though prices have slid about 8 percent since August, the decline is not enough to make homes affordable to many young families, the Daily Mail reported Saturday.

"Our analysis suggest that in almost three out of four local authorities, the price of an average house remains out of reach for people on average earnings living in the area," said John Ward, managing economist at the Center for Economics and Business Research, who carried out the research.

Researchers examined house prices in England and Wales.

The study found that in Westminster, the most expensive part of England, prices would have to fall 63 percent before homes there would be affordable to many first-time buyers.

Researchers say homes are already affordable in places such as Bradford, Coventry, Liverpool, Swindon, Milton Keynes, Plymouth, Somerset, Birmingham, Barnsley and Lancashire.

In cities deemed affordable, interest payments on a mortgage would be 25 percent or less of the buyer's gross income.

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