House prices at 10-times income by 2026

Home buyers could face house prices that are 10 times their annual salary by 2026, states a new housing advisory body.

As house prices continue to rise steeply, as many as 30% of non home owners now believe they will never set foot on the property ladder, say the National Housing and Planning Advice Unit (NHPAU).

"Housing affordability has reached a critical point," said unit Chairman Stephen Nickell, a former member of the rate setting Monetary Policy Committee (MPC).

"First time buyers have seen a big rise in the deposit needed to buy a home and the amount of their income spent on mortgages" "Demand for housing is growing," he added, "and unless action is taken, pressure on the market will only get worse."

The NHPAU is a new non-departmental body, sponsored by the Department for Communities and Local Government, which will provide expert advice to the government on addressing long term market affordability and housing supply.