Future hope for first-time buyers

Rising wages and changes in the property market mean that first-time buyers will find it easier to get on the property market by 2025.

Wage increases are forecast to outstrip property price rises, while changes in the housing stock will also facilitate first time buyers, according to a new report by the Centre for Economic Research.

Wage increases are expected to rise by 140 per cent over the next 20 years, compared to 112 per cent for property prices.

In addition, the number of small starter homes is likely to increase, partly due to government subsidies.

However, current divides in the housing market are set to increase, with first-time buyers in the south-east predicted to afford 15 per cent of properties, compared to 60 per cent in the West Midlands.

Also, the gradual transformation of households will trigger a more divided appearance to UK homes.

The report predicts that numbers of inter-generational families sharing large properties in order to save space and money will rise, while the growth of single households will boost demand for compact homes.