Remember when we were told that Help to Buy was for first-time buyers? We were sold a pup – it was for many-time developers!
“The average salary required by a first-time buyer to purchase a home in the UK’s biggest cities has risen by 18% in the past three years, above the rate of earnings growth – making it harder for young people to get on the housing ladder.
London house prices post first annual fall since 2009
In the latest sign that homeownership was becoming an increasingly distant prospect for young adults in the UK, figures from the research company Hometrack showed only three out of 20 major cities had become more affordable since 2015.
The biggest drop in affordability in the past three years was in Bristol and Manchester, where rapid growth in house prices had pushed up the average wage needed by a first-time buyer by almost a quarter.
In Bristol, a first-time buyer now needed to earn £58,826 per year to afford the average property, compared with £47,283 three years ago; while Manchester has seen the salary requirement jump by more than £6,500 to £34,770.
It has also become harder for first-time buyers to purchase a property in cities that include Leicester, Birmingham and Nottingham, with home values rising by more than the rate of growth in earnings over the past three years. …”