Generation 'locked out of buying, renting a home in UK'

If you're worried about the cost of buying a home in Australia, spare a thought for first home buyers in Britain, where a new report suggests an entire generation won't be able to buy or rent their own home.

(SBS)

House prices in Britain are set to soar by 35 per cent by 2020, while rent is set to increase by nearly 40 per cent.

"If you're a young professional couple, unless you're able to get considerable support from your parents or somewhere else, the chances of buying your own home are really fading into the distance," says David Orr from the UK National Housing Federation.

"For many people that dream of owner occupation is just not going to happen."

By 2020, the average house price in London will rocket to 18 times the average wage.

Already 310 workers a day in Britain - that's one every 5 minutes - is turning to the government for housing benefits.

The report reveals another major problem, while UK property prices are on the boil it seems new property construction has hit a deep freeze.