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First time home buyers squeezed out of market

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Date: Thursday 17 Apr 2008

LONDON (ShareCast) - The disparity between house price inflation and wages is stopping first-time buyers from entering into the property market

According to the housing charity Shelter, over the last ten years house prices have risen around 200% from £52,674 in 1997 to £159,494 in 2007.

Income for an average family though has increased only 53% to £900 per week.

Buyers in London are the worst hit, with prices for first time buyers rising to £260,000 last year in the capital last year.

Shelter chief executive Adam Sampson said: "Salaries throughout the UK may be rising, but ordinary people are still being priced out of the housing market."

"Buying a home has now become a distant, unaffordable dream for millions of first-time buyers, while thousands of others are facing repossession and homelessness."