First-Time Buyers Continue To Miss Out
To state the obvious, UK average incomes have consistently failed to keep pace with housing prices over many years.
What was the outcome of that?
First-Time Buyers have been priced out of the market in many regions of the country. As a result, the professional rental market has skyrocketed, and individual property owners (as well as many institutional investors) have stepped in during the absence of alternative options.
However, First-Time Buyers are seen as an indicator of the property market’s health. Without enough new entrants, the total housing market cannot maintain itself long term.
According to Stipendium’s study, the average First-Time Buyer in the UK can afford a house valued at £196,818.
This is based on borrowing 4.5X the average UK wage with a 15% deposit.
The issue, is that the average housing price is currently £234,469.
