UK house prices out of reach for first-time buyers
It is becoming increasingly difficult to climb onto the UK property market, with the office for national statistics producing findings that show house prices are on average 7.6 times the average working salary. For many, its proving almost impossible to save for the required 10% deposit.
In 2007, buyers faced a similar problem. Before the financial crisis kicked in, the average stood at 7.2 times average earnings (a record at the time). As the market have recovered, we’re seeing an even great gap. By 2015 it stood at 7.4 times, it briefly dropped down only to return to today’s 7.6.
Is it all doom and gloom?
The only real positive about the UK housing market for first-time buyers is the low interest levels. Borrowing costs are at historic lows with banks and building societies cutting interest rates on mortgages to attract customers.
What are some property commentator’s views?
"Up to 40% of buyers do not have a mortgage, they are cash buyers for whom affordability isn't an issue and for whom there is no link to their income," he claimed.
"Half of people who own a home have no borrowings. The unearned and largely untaxed money they have made simply by living in their property isn't recorded in inflation figures but it is a significant part of what maintains house prices and drives the economy."
Roger Harding, of Shelter
"The only way to fix the housing crisis is for the government to get behind a different way of building that brings down the cost of land."
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