First Time Buyers will need to save an extra 4.22% of their wages
According to Nationwide’s latest House Price Index, the UK average house price is now £200,251. Average annual salary in the UK is £26,500 which equates to a First Time Buyer needing to save up 76% of their annual salary just to cover the 10% deposit.
The Hays Group reports that wages will rise 2.5% this year but even taking that into account, if prices continue to rise at the same rate, FTB’s will need an extra £1,141 next year to get on the UK property ladder – 4.22% of their wages.
As you would expect, prospective London first time buyers will be the worst off. They currently need an average of 131% of their annual salary to cover a deposit and this will increase to 143%, meaning they will need to save an extra £5,244 or 14.73% of their annual salary.
By UK country, Wales and Northern Ireland buyers will need an extra £241 and £222 respectively for their deposits, whereas in Scotland, if prices fall annually the same as they did this year, purchasers will need £280 less in their savings pot. In England, buyers will need £1,891 extra which equates to 6.96% of their annual salary.
We think the message to any first time buyers you meet must surely be, get on the ladder as quickly as you can!
Savvy Sales Progressors provides outsourced sales progression services for estate agents. Take a look at our website for more information. You can also try our unique online calculator to see whether outsourcing will be more financially beneficial than an in-house resource: www.savvysalesprogressors.co.uk
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