1st-time buyers now need average salary of £53k

A first-time buyer needs a salary of £53,000 to buy a home in the UK’s biggest cities. New data suggests the average income needed to finance a home purchase has risen by 18 percent in the last three years, well above the rate at which earnings have actually grown.

The figures from the Hometrack UK Cities House Price Index reveal just how tough it is for first-time buyers to get a foothold on the property ladder across the UK.

Hometrack’s figures show that in only three of the 20 UK cities it monitors have house prices become more affordable in the last three years.

Its report states: “To highlight how housing affordability is developing, we have calculated the income required by a typical first-time buyer to purchase an average-priced property in 2015 and 2018. While mortgages rates have fallen since 2015, the income to buy has increased by an average of 18 percent and by as much as 24 percent in Bristol.”.

For first-time buyers, the average salary required to buy their own home varies significantly across the UK. In Liverpool, the gross household income to buy is £25,000, but in London, it’s £82,000. Along with Bristol, where you’ll need to bring in more than £58,000 a year, Manchester recorded the biggest rise in affordability, up by £6,500 three years ago to £34,770.

In its analysis of UK city house prices, Hometrack notd that property prices are rising faster than earnings in 16 areas, but the pressure on affordability is continuing to grow because mortgage lenders are imposing tighter loan-to-income thresholds, meaning first-time buyers in particular have little room to manoeuver.

Any first-time buyer who has already secured their mortgage finance and has their deposit in place can access high-quality, low-cost conveyancing services with Homeward Legal.

We work with property lawyers across England and Wales who have vast experience in completing transactions for first-time buyers.

Call our team now on 0800 038 6699 – we’re open seven days. You can also get an instant quote for first-time buyer conveyancing services.