Situation worsens for home buyers

Only one in 10 households can afford to buy their first home in some parts of Devon and Cornwall, according to new figures.

The plight of first-time buyers in the South West is highlighted in a report by the South West Observatory.

It said the number of households unable to buy on the basis of income has risen by about 20% in the past two years.

Comparing data from 2004 to 2006, the report said in some areas up to 93% could not afford to buy a home.

The report is part of the observatory's regional economic profile prepared for the South West Regional Development Agency.

The National Housing and Planning Advice Unit says average prices in England are more than seven times average salaries.

Last week Housing Minister Yvette Cooper unveiled government funding to encourage local councils to help create new homes.