Capital's soaring house prices mean first time buyers spend £140k more for a home

First time buyers in London are paying an extra £140,000 compared to what they would be paying if house prices had risen in line with income.

The charity, Shelter, says that if the average income of a first time buyer and average house prices had remained in line with each other, first time buyers would be paying 42% less for their first home.

Shelter is warning that with average house prices in London now almost fifteen times the average wage, compared to just seven times fifteen years ago, aspiring homeowners on ordinary incomes have little hope of covering the extra cost.

Sarah and her husband live with their young daughter, and worry they might never be able to afford a home of their own.

Shelter is warning that unless politicians get serious about building affordable homes, an entire generation will be priced out of a home of their own.

Recent government statistics show that home ownership overall has dropped to its lowest level since the mid 1980s.