THE number of 25-year-old home owners has halved in the past 20 years as house prices rise and supply falls.

According to the Local Government Association (LGA) average house prices are now 7.9 times people’s average earnings and the average size of a deposit is 62 per cent of annual incomes. In London it is 13 per cent.

Meanwhile those wanting to get their first step on the property ladder have also been hit by a lack of available affordable housing.

Councillor Martin Lett, housing spokesman for the LGA, said: “Our figures show just how wide the generational home ownership gap is in this country. A shortage of houses is a top concern for people as homes are too often unavailable, unaffordable and not appropriate for the different needs in our communities.”

The LGA has put forward 30 recommendations for the government on how it can improve the housing situation ahead of the government publishing its Housing White Paper.

These include freeing councils from restrictions on their borrowing so they can build more affordable homes and giving councils more power to undergo compulsory purchases of land with planning permission for home that has not been built on yet.

The LGA also recommends allowing local discretion in deciding the number of new starter homes on any development as many discounted starter home prices are now out of reach for those looking for an affordable home.

Among the recommendations the LGA has addressed the challenges of an ageing population, encouraging the government to build more new homes that support healthy ageing and reduce cost pressures on health and social care.