Under-35s in Sydney 'cannot afford new homes'

House prices in Sydney are so high that many people cannot afford to get a foot on to the property ladder.

A new study conducted by a UK housing expert has suggested that younger people are particularly struggling.

The most recent World Cost of Living Survey showed that Sydney is one of the most expensive places to live on the planet, which is certainly not helping the property market.

Speaking to the Australian Associated Press, co-author of the Homes for All report Dr Tim Williams said the government needs to reconsider tax incentives and certain policies that are likely to encourage property investors to push house prices higher.

He stated the uptake of home loans could decline sharply unless swift action is taken by the authorities.

"Seventy per cent of 35-year-olds and younger cannot afford to buy any kind of home at this point in time, on average," Mr Williams was reported as saying.

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