For Britons home ownership is a goal that everyone strives to achieve. However, not every Briton is able to purchase a home simply because of the barriers in place. Now, would-be first time homebuyers in the UK will be faced with even more challenges.

Home prices continue to rise, which is great for homeowners and bad news for would-be homebuyers. This results in thousands of individuals realizing the sad truth that home ownership is just out of their reach. Despite a strong economy incomes cannot keep up with the prices of homes. The result is a great deal of would-be homeowners unable to afford the purchase price of a home.

Why has this happened? The answer is because home prices have skyrocketed. In fact, over the past decade home prices have escalated 187% on average, according to the Halifax.

While income growth is stable it in no way compares to the growth of home prices. The result is fewer individuals being able to afford homes. In fact, individuals with great incomes are unable to buy a home simply because the average house price has increased from £62,453 to £179,425 on average from the first quarter of 1996 to the third quarter of 2006. That puts home prices increasing more than 10% each year and income increases have not been increasing similarly.

Regardless, first time homebuyers are determined to own a home of their own. This has resulted in quite a few schemes to buy homes in groups, using guarantors, and the like. Therefore, first time homeowners are finding ways into home ownership. But at what cost? 

Many are stretching their salaries very thin, too thin in some cases. Nevertheless, lenders are becoming creative in their lending to allow first time homebuyers the opportunity to buy a home. This means creative calculations to lend the amount a homeowner needs to buy a home. How all of this will play out in the future remains to be seen but lenders and first time homeowners may both be navigating a very slippery slope.