As house prices continue to rise UK property expert Jon Charters-Reid says “The Conservatives have won the election, now they need to wake up and smell the reality!
IF EASY TO ATTAIN 95% MORTGAGES DO NOT RETURN SOON, THEN WE ARE IN FOR A SHOCK!
This will prevent natural growth of the housing market - lack of first time buyers means the future markets will steadily dwindle. It's important at this stage that we see small growth only on those properties for first time buyers.
NOW IS THE TIME TO BUY Jon goes on to say or you could miss the boat
Across the UK, the average annual house price for first-time buyers is £202,765, according to ONS figures. To buy this property with a mortgage at 4.5 times salary, a purchaser would need to earn £40,533. The current media annual wage for first-time buyers across the UK is just over half that figure, at £22,044.
The gulf was greatest in London where a prospective homeowner would need to earn £76,971 to afford the £384,856 average first-time buyer property. The median annual wage for a first-time buyer in the capital was £28,000, however.
The gap was narrowest in the North East, where actual earnings of £20,149 compared to required wages of £23,616. However, this still leaves a prospective first-time buyer 17 per cent short of where they need to be!