Owning property is rapidly becoming the impossible dream in this country for many renters, especially when it comes to purchasing property in the UK’s biggest cities.
According to a new index published by property website Zoopla, the housing market is in the process of adjusting to more realistic pricing, and yet prices are still rising by close to 5% a year - more than twice the rate of inflation - in some cities; bad news for many renters aspiring to get a foot on the housing ladder.
The index, which tracks property price fluctuations across the country's 20 biggest cities, showed that the fastest rate of year-on-year house price growth in August was in Leicester, at 4.8%.
Liverpool was the next fastest growing city for residential property price growth, with average prices in the city rising 4.6%, while Manchester grew by 4.5% year-on-year.
The data suggests that many people will be forced to rent for longer across many parts of the country.
Josef Wasinski, co-founder of Wayhome, said: “There’s no denying that these figures will be a blow to the thousands of hard working, credit worthy individuals struggling to take their first steps onto the housing ladder.
“The grim reality is that there are still few alternative options available for those who want the security that comes with homeownership. Without financial help from family to find a significant deposit, they are faced with a choice of either continuing to rent or buying a home which is unsuitable to their needs.
“Without radical new ideas people will continue to struggle to escape their ‘generation rent’ status and finally become homeowners.”