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First time buyers 'need £40,000 plus deposit'

A deposit for an average first time buyer is now almost twice the average salary of a young person, according to new research.

Labour said its study also revealed that the number of young people owning their own home has fallen by a fifth since 2010.

A 20% deposit for a first time buyer in England is now £42,500, the party said.

Labour warned that starter homes promoted by the Government will do little to tackle the crisis because by 2020 young people will need to have an income of £50,000 and a deposit of £40,000.

Shadow housing minister John Healey said: "After five years of failure from Conservative ministers it's harder than ever for young people to buy a place of their own. The Government's response to this housing costs crisis barely scratches the surface.

"If you're a young person or family on an ordinary income, then a home of your own must feel increasingly out of reach, while government plans are next to no help.

"As the Chancellor showed in the spending review last week with cuts to housing investment and affordable homes, he's not willing to help young people with the crisis of high housing costs."

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