Getting on the Property Ladder: A Steep Climb for First-Time Buyers

The UK’s first-time buyers are facing an uphill battle when it comes to getting on the property ladder. According to recent research from Zoopla, the average first-time buyer would need to earn a staggering £60,600 to purchase a home, nearly double the average UK household income of £33,300.

First-time buyers are struggling to get on the property ladder

This income would be required for a typical first home worth £250,000 with a 20% deposit. The firm attributed this additional income needed to a decline in the loan-to-income (LTI) ratio and higher asking prices.

Existing Homeowners Struggle to Upsize

It’s not just first-time buyers who are struggling. Existing homeowners looking to upsize would need an income of £72,600 to buy an averagely priced home of £335,000. This was £3,400 more than the income needed a year ago.

Regional Variations in Income Needed

The income required from first-time buyers varies greatly across the UK. In Northern England and Scotland, people looking to buy their first home needed a smaller income than they would in the Midlands, Wales or Southern England.

Regional variations in income needed for first-time buyers

The lowest income required was in the North East at £29,100, with a typical first-time buyer home costing £120,000. This was followed by Scotland, where first-time buyers would need to be earning £31,500.

Conclusion

Getting on the property ladder is a daunting task for many first-time buyers in the UK. With rising house prices and stricter lending criteria, it’s becoming increasingly difficult for people to take that first step onto the property ladder. However, by understanding the regional variations in income needed, first-time buyers can start to plan and prepare for their future.