1.8m families ‘priced out of homes market’

A generation of “forgotten families” risks being priced out of the housing market without a dramatic expansion of shared home ownership, a charity has warned.

By The Newsroom

Published 29th Aug 2013, 18:23 BST

Up to 1.8 million middle-income families earning between £20,000 and £40,000 could find themselves stuck on the first rung of the property ladder or face years of private renting, Shelter said.

Almost three-quarters of them will be unable to buy a family-sized home because of the rise in property prices, a report by the charity concluded.

Its data suggested the Government’s Help to Buy scheme – which offers loans so people can purchase new-build homes with a deposit of five per cent – will still leave more than three in four families “priced out”.

A similar number of families on low or average incomes will not be able to cover the monthly mortgage repayments on a family-sized home, even if they have the funds for a deposit, Shelter found.

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