The South East had high prospective first time buyer affordability ratio in 2017
New figures have revealed that, unsurprisingly, first time buyers face paying more in London than anywhere else in the UK. However, the study did yield some interesting further results. While in London first time buyers faced paying 13 times their earnings on property, this fell to just 5.5 times in the north east – according to information provided by the Office for National Statistics (ONS).
This means that London once again becomes the least affordable place for new buyers to get on the property ladder – the 14th time in the last 19 years where this has been the case. The north east is the most affordable for the 18th time in the last 19 years.
Over this time, the first time buyer ratio has increased from 3.89 in London to 13.03, a rise of more than 235%. And while the ratio remains low in the north east, it has also grown there too, from 2.46 to around 5.5. These ratios have been driven up in recent years and buyers in England and Wales spent on average around 4.3 times their gross annual income on property with a mortgage.
It was in London, the south east and east of England where first time buyers had the highest affordability ratios. In total, in these areas there were 12 local authorities in which they spent more than six times their income on buying with a mortgage. However, surprisingly the affordability ratio in the city of London decreased by around 43%. However, this was probably due to the fact that incredibly high property prices made it very unlikely for any first time buyers to purchase property here.
So, what this means is that in general it is harder to get on the property ladder for first time buyers than ever before. And this true for almost every part of England and Wales. Whilst there are still some parts of the UK where the affordability ratio is low, it has still come more difficult to get on the property ladder wherever you choose to live.
All of which has led to a continuing strength in the rental market in many regions which has made property investing a great idea. For more information about the affordability ratio in the east of England and Norwich area, and to find out how investments can make the best of this situation, get in touch with a member of the Agile team.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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