The dream of owning a home is set to move further out of reach as first time buyers will need a £64,000 salary to afford an average home by 2020.
This is an increase of a fifth on the £52,000 needed to secure a typical starter home today, according to homeless charity Shelter.
The prospect is particularly daunting in London, where a single or joint income of £106,000 as well as a £138,000 deposit is needed to buy a home
According to Shelter the average price of a starter home is set to grow 23 per cent to £270,000 by 2020.
The trend of meager pay rises is expected to continue, amid growing fears about the health of the UK economy.
If wages continue to grow at the same pace the average salary will be £29,532 by 2020.
Campbell Robb, chief executive of Shelter said: ‘When house prices are increasing six times faster than the average wage, it’s no wonder people on ordinary incomes are being locked out of a home of their own.’
‘With the situation only set to get worse, Generation Rent will be forced to resign themselves to a life in expensive, unstable private renting, and wave goodbye to their dreams of a home to put down their roots in.’
The number of younger people who own their own home has slumped to a record low since the financial crisis.
Figures from the Office for National Statistics published last week showed a record 2.2 million people were still renting in their thirties in 2014, compared to 1.24million in 2007.
Soaring house prices, a crackdown on risky mortgage lending and years of meagre or non-existent pay rises have put the dream of home ownership beyond reach for many people.
More than double the amount of people in their early to mid thirties have been forced to rent since 2007 – the year that Northern Rock fell to the brink, heralding the start of the credit crunch.
A record 1.2million aged between 31 and 35 were renting in 2014, according to latest figures from the Office for National Statistics.
This equates to 31.4 per cent of the age group.
This compares to just 648,000 people in this bracket in 2007, or 17.3 per cent.
rent to own homes in new orleans
rent to own agreement
rent to own contract
free rent to own listings
rent to own real estate
rent to own realestate
rent to own houses
rent to own programs
rent to own condo
rent to own with bad credit
bond for deed
bond for deed in new orleans
rent to own in metairie
