A BBC News article states that the TUC (Trade Union Council) has reported that over the past 10 years, house prices in the UK have increased four times faster than the annual earnings of most people. Rics (Royal Institution of Chartered Surveyors) have also stated that first time buyers on average have to save £25,600 to secure their own home.
This is £300 more than the average joint take home salary of a couple. No wonder people are not buying houses anymore when it will probably take them years to save a whole years salary.
The average house price is now £200,000 - a rise of 11% per year - whilst incomes have increased by only 3.5% per year.
With interest rates on the up and repossessions more common, will the property market survive?
Read the full article here
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