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Region's average house price set to rise to £142,000 by 2020

Shelter predicts first-time buyers in the North East will need a deposit of £21,000 in 2020 Photo: Chris Ison/PA Wire

First time buyers in the North East will need £40,000 salary to afford an average home by 2020, the charity Shelter has warned.

The figures represent an increase of £6,000 on the £34,000 needed for a typical first time buyer's mortgage today.

First time buyers would need a typical deposit of £21,000 to keep up with rising house prices, which are projected to rise to £142,000 in the region over the next four years.

£21,000
Typical deposit needed in North East in 2020

Over the last five years, the region's severe housing shortage has seen house prices rise at double the speed of wages.

Campbell Robb, Shelter's Chief Executive, said: "When house prices are increasing at double the pace of the average wage, it's no wonder people on ordinary incomes are being locked out of a home of their own.

"With the situation only set to get worse, Generation Rent will be forced to resign themselves to a life in expensive, unstable private renting, and wave goodbye to their dreams of a home to put down roots in."