
Jun
Zoopla – Income needed for FTBs rises 9% in three years
The average income required to purchase a property in a UK city has risen 9 per cent since 2016, according to data collected by Zoopla.
This represents a rise of £4,500 to reach £54,400.
Looking at individual cities, a first-time buyer needs an average income of £84,000 to purchase a property in London. However, this figure has fallen by £3,250 since 2016 – a 3 per cent decline.
In contrast, the average FTB needs to earn £26,137 annually to purchase a property in Liverpool.
Leicester has seen the largest percentage increase in income required to purchase since 2016, at 20 per cent. This was followed by Birmingham and Manchester both recording an 18 per cent rise.
Furthermore, the data shows that the average deposit required for FTBs to purchase a property in a UK city is currently £38,418.
Average deposits also vary regionally. In London, the average deposit required for an FTB is £119,000, whereas in Liverpool this figure stands at £18,449.
Looking at house price growth on an annual basis, Liverpool saw the largest rise at 5 per cent. This was followed by Belfast at 4.6 per cent, and Nottingham at 4.5 per cent.
In contrast, the average price in Aberdeen declined 4.2 per cent, and in Cambridge the data shows a fall of 0.5 per cent. In London, the average price dropped 0.4 per cent over the same time frame.
Zoopla research and insight director Richard Donnell says: “Weakening city house price growth is a result of market fundamentals. Specifically, changing affordability dynamics for home buyers and the impact of successive tax changes since 2015.
“Together, these have impacted household buying power, and demand for housing, hitting high priced cities more than others.
“First-time buyers are an important group accounting for more than one in three sales. Affordability remains attractive in many regional cities where house prices have not registered the gains seen in south eastern England.”
Source: Mortgage Strategy