First-time buyers in the capital borrowed 3.85 times their gross household income, exceeding the UK average of 3.44.
In contrast, first-time buyers in Northern Ireland typically had a loan-to-income ratio (LTI) of 2.76, while the figures were 3.02 and 3.25 for Scotland and Wales respectively.
The capital’s first-time buyers paid 19.2% of gross income to cover capital and interest payments, compared to 15.9% in Northern Ireland, 17.2% in Scotland and 17.6% in Wales. The UK average is 18.1%.
London also ranked top for homemover LTI at 3.79 times the gross household income, the only region to exceed the UK average of 3.14. Levels reached 2.32 in Northern Ireland, 2.70 in Scotland and 2.78% in Wales.
Home movers’ payments in the third quarter represented 19.3% of their income in London, with Northern Ireland offering the lowest figures at 15%. The UK average is 18.1%.
While the average gross income in London for a first-time buyer is £61,000 – £86,727 for home movers – Paul Smee, director general of CML, said: “The number of people buying their home in London are at levels not seen since 2007.”
While he pointed out that this is only 60% of the number seen at the height of the market, borrowers appeared to be taking advantage of ‘relatively favourable’ economic conditions, which could mean a continued rise in the New Year.
