First time buyers must wait till 2025

First time buyers in 2025 will find buying a home much easier than their struggling counterparts today.

12:52 26 August 2005

First time buyers in 2025 will find buying a home much easier than their struggling counterparts today.

A new report by the Centre for Economics and Business Research predicts that changes in wages and the property market over the next twenty years will increase property's affordability.

Despite predicted house price increases of 112 per cent, wages are set to increase by 140 per cent over the next 20 years.

Changes in the housing stock will also aid first time buyers. The number of small starter homes is expected to increase, driven in part by government subsidies.

Current divides in the housing market are, however, set to increase.

First time buyers in the south-east will only be able to afford 15 per cent of available properties. Buyers in the West Midlands will enjoy the most choice with 60 per cent of houses being affordable.

Changing households will also fuel a more divided appearance to UK homes.

The report predicts increased numbers of inter-generational families sharing large properties to save space and money, whilst the rise in single households will increase demand for compact homes.