First time buyers have higher than average incomes

July 30, 2016 by Brendan O'Neill

Property Market

According to a report published by the government, the average annual income for a first time buyer is higher than the average household income.

The English Housing survey revealed that the annual income of a first time buyer was £43,000 in 2014-15, while the average income was £27,000. The data indicates that only those people with an income higher than average feel ready to make the necessary financial commitment involved in buying a home, and actually manage to get on to the property ladder.

During the last decade, more people have required help from family and friends to save for a deposit, with the figure increasing from 22% to 27% needing assistance. It is particularly difficult for a single person to buy a home. In 2014-15, 80% of buyers were couples, while 10 years ago, just 62% of people buying a home had a partner.

The number of people renting a home privately has also increased, rising from 11% a decade ago to 19% in 2014-15. Campbell Robb, the chief executive for Shelter, said:

“These figures are a glaring reminder that this country’s drastic shortage of genuinely affordable homes means for millions finding a place to call their own is fast becoming out of reach.”

Robb added that for many people, unless they have help from friends and family to secure a deposit, they face a lifetime of renting a home. Mortgage advisers spend time studying for their CeMAP qualification, so that they can help buyers to find a suitable mortgage.