A new study of ONS data has revealed the gulf of how long first-time buyers must save for a deposit for a property in different areas across the country.
housebuyers4u examined property values, rent costs and household incomes to work out saving periods for a deposit for a detached home in districts nationwide . The analysis took median annual earnings per household and the average monthly rental price for a detached house in each location between January and May this year, then compared this to the average price of a detached property in each area to calculate how long it would take a first-time buyer to reach a typical 25% deposit.
Stoke-on-Trent came out on top, needing just four years, with average property prices of £229,469 and median household earnings of £57,815. Just behind this is Kingston-upon-Hull at four years and one month of saving for a deposit of an average home at £240,357 with median household earnings of £58,894. County Durham is in third place, with an average detached property priced at £236,119 and median household earnings of £55,622, equating to a savings period of four years and three months.
The rest of the top ten shortest savings periods range from four years six months (for both Derby and Sunderland) to five years five months (both Wolverhampton and Swansea.
At the other end of the league table, the City of Westminster has come out as the least affordable, requiring 41 years and six months before affording an average deposit. This is based on an average property price of £4,012,081 against the median household earnings of £96,585. Haringey follows (38 years and nine months save for the deposit on an average-priced detached property of £2,358,125 based on earnings of £60,858. It may not be surprising that all ten of the least-affordable places in this study are London boroughs, all requiring a savings period of at least 19 years according to the criteria of the study (the others being, in order, Camden, Wandsworth, Merton, Barnet, Brent, Enfield, Southwark and Harrow).
Paul Gibbens, property expert at housebuyers4u, commented on the findings: “The data shows that northern regions offer much more achievable paths to homeownership. Stoke stands out as the UK’s easiest city for first-time buyers to save for a house deposit. With residents able to put together a 25% deposit in just under four years, it shows how achievable homeownership can be outside of London.
“The statistics show that first-time buyers in Westminster would need to save for over 41 years to afford a house deposit, and the total time needed across London boroughs is significantly higher than in northern regions. This geographical divide continues to reshape the UK property market as younger buyers increasingly look north for their first home purchase.”
Read the orginal article: https://propertyindustryeye.com/where-can-first-time-buyers-get-on-the-property-ladder-quickest/
