Fresh nightmare for sellers as the ONS releases its latest affordability figures
The latest statistics regarding the affordability of a home for a first-time buyer in the UK highlight the growing gap between house prices and wages.
To highlight the difference between average sold house prices and average wages, the Office of National Statistics has, for many years now, used the “affordability ratio” to illustrate the state of the market for house-hunters.
Traditionally, most first-time buyers have always been aged between 22 and 29 years of age, however, the ONS has stated that further data would allow for more accuracy as buyers in 2018 are more likely to be older or use the help of their partner’s earnings to boost the amount they can borrow from a lender.
However, the published data has highlighted a number of worrying trends for those hoping to gain a foothold on the property ladder – as despite the fact that most buyers in 2017 only needed 4.3 times their annual income for a deposit, in larger cities such as London, a first-time buyer would need up to 13 times their annual salary.
“For first-time buyers in London, the number 13 certainly symbolises bad luck. To have to spend 13 times your earnings simply to get on the first rung of the property ladder is borderline obscene,” said Ross Boyd of mortgage site Dashly.
“While average UK house price growth has been slowing for some time now, the sheer lack of supply means prices are being propped up and that’s contributing to the continued lack of affordability in certain areas of the country.”
In his statement, Mr Boyd is referring to the Tory party’s failure to deliver on their promise to build 300,000 new homes per year – a promise which is necessary to ensure that there are enough homes to cover the UK’s growing population.
While there are a number of initiatives available to first-time buyers such as Help-to-Buy ISAs, many younger individuals are already resigning themselves to a lifetime of renting.
This may be good news for landlords, but for those who are desperate to sell their house fast, the likelihood of finding a buyer who can afford to pay the stated asking price is reducing rapidly – and this is why a great many vendors are turning to National Homebuyers.
National Homebuyers are a house-buying company who are willing to buy any house, regardless of condition or location at competitive rates – with most sales completed in as little as two weeks.
Can’t find a buyer? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.