A new report assessing the situation facing people in the UK who are trying to buy a first home has found that the majority of them are unable to afford a property in their preferred location.
The Group Home Affordability Index published by Skipton shows that just one out of every eight of these buyers is able to afford the average house price in their favoured location. Among those who are trying to buy for the first time and who make £22,850 a year or under, less than one out of every 100 is able to afford prices in the place where they live now. The figure is 44% when it comes to people with an annual salary of more than £71,250.
That is not the only affordability issue facing first-time buyers that the Skipton report has uncovered. It also reveals that close to 80% of them do not have enough money set aside in savings to be able to meet deposit costs. Almost four out of every 10 people who currently rent are using at least 45% of their income each month on paying that, which is making it harder for them to save.
Skipton Group chief executive Stuart Haire told Mortgage Introducer that:
“Our findings paint a bleak picture for first-time buyers, with high housing costs, insufficient savings, and regional disparities underscoring the need for collaborative and targeted interventions to support aspiring homeowners.”
Advisors with CeMAP training will certainly agree that more must be done to combat rising house prices.
