According to a recent report, someone looking to purchase a house may have to find up to 7.6 times their average annual earnings.
A report by the Office for National Statistics stated that workers in England and Wales would have to pay 7.6 times their annual income for a new home. In 2007, the average property price was equivalent to 7.2 times the average annual salary. In 2015, this had increased to 7.4 times, and last year the figure had reached 7.6. As the figure increases, more buyers are being faced with an affordability gap, as wages fail to increase at the same pace as property prices.
First time buyers are finding it particularly difficult, as the prospect of home ownership is becoming more expensive. However, in a bid to attract more customers, lenders are offering some of the lowest mortgage deals.
According to a recent report issued by Shelter, almost 80% of families cannot afford to buy a newly built property in their area. According to a study by Zoopla, the property market in Northampton is the fastest moving. The property portal looked at the time a property was on the market before an offer was received. In Northampton, the time was just 27 days. Property in Wales remains on the site for 66 days before an offer is received.
As home ownership becomes a distant dream for some, it may be useful to consult a mortgage adviser, as they have taken a CeMAP training course, and may be able to make some suggestions to help.
