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First-time buyers 60 per cent worse off than parents

The ratio of house price to income has risen by an average of 60 per cent in the UK between 1970 and today with London, East Anglia and the South West having the highest ratios.

The research from Alliance Trust found that Scotland and North England have the lowest ratios while London is the least affordable region for first-time buyers with house prices 4.4 times income compared with 2.6 times income in 1970.

The region where house prices rose most over the 35 year period was London where they climbed 3,432 per cent followed by the South West which was up 3,427 per cent.

Alliance Trust Research Centre head Shona Dobbie says: “There are knock-on effects from the pressure on first-time buyers, such as the time now needed to build up a larger deposit. With so much time now being spent focusing on saving for a house and paying it off, people are putting off retirement saving for even longer.”

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