Labour vow to help young people 'locked out of housing market'

Updated: 

Nearly a million households are being hit with unaffordable mortgage costs with young people being "locked out" of the housing market, Labour has said.

Some 972,000 people are seeing more than a third of their incomes consumed by mortgage costs, which is considered a threshold of affordability, according to new analysis of the Government's English Housing Survey by the party and the House of Commons Library.

The official figures, published last month, also show the number of households owned by someone under 45 has fallen by 904,000 since 2010.

It comes after Labour leader Jeremy Corbyn condemned the Government's "misguided" housing strategy as he continued his summer campaign to target Tory seats in marginal constituencies.

Shadow housing secretary John Healey said: "The cost of the housing crisis means that young people looking to buy a home of their own are being locked out of the housing market.

"After seven years of failure, the Conservatives have no plan to fix the housing crisis.

"Homeownership has hit a 30-year low and the number of under-45s who own their own home has fallen by over 900,000.

"Labour would bring in a big new deal for first time buyers including 'first dibs' on new homes built in the local area and 100,000 new discount FirstBuy Homes which are priced at a level linked to local average incomes.

"Labour offers help to the many aspiring first-time buyers on ordinary incomes and hope that things can change."

A Department for Communities and Local Government spokesman said: "This Government is determined to make housing more affordable and we're investing £7.1 billion to build more affordable homes.

"We've already helped more than 400,000 households into homeownership through government-backed schemes since 2010, and the number of first-time buyers is at a nine-year annual high.

"Our Housing White Paper sets out further measures to build more of the right homes in the right places, to rent and buy."