First time buyers are facing an even tougher battle. It is 60% more difficult for first time buyers to climb onto the property ladder than was the case for their parents.
Recent research by Alliance Trust shows that the 1970 ratio between earnings and house prices has gone up by 60%. The situation is worse in East Anglia, London, as well as the south-west, where ratios are over 60%. London house prices are 4.4 times average income, an increase of 2.6 times the average 1970 income.
Scotland is the least expensive place to buy, with the ratio of house prices to incomes having risen from 2.4 to 3.2. Northern England (3.3 times incomes) as well as Yorkshire (3.4 times incomes) are the following two most affordable places to buy.
Moreover, the gap between the most affordabale and the least affordable UK regions have gone up in the last 35 years. The south-east was the most expensive region in 1970, where a foot onto the property ladder was 29% more expensive than the cheapest region, Yorkshire. 2005 witnessed London as the worst region for the first time buyer , with affordability 38% worse than the cheapest region, Scotland.
It is becoming even more difficult for first time buyers to get into the housing market . Buy to let investors have now adopted the traditional role of first time buyers in ensuring the market keeps on going, yet you need first time buyers to keep prices going over the long term.
First time buyers are under pressure. They have affordability problems as well as not being able to save enough for a deposit.
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First Time Buyers Have an Even Tougher Time
Tue, 31 Oct 2006
Recommended links
First Time Buyers Still Looking at Parents for Help in Buying a HouseFirst TIme Buyers in Debt
First Time Buyers Club Together
First Time Buyers Borrowing Extensively
Apply for a First Time Buyer Mortgage
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