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First-time buyers will need £64k salary by 2020 – Shelter

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  • 14/04/2016
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First-time buyers will need £64k salary by 2020 – Shelter
First-time buyers will need to earn £64,000 a year by 2020 to be considered for a mortgage, research from housing and homeless charity Shelter shows.

The report revealed that fledging homebuyers would need to increase their income by a fifth on today’s requirements of £52,000 a year.

Adding to their financial pressures, first-time buyers will need a deposit of £46,000 to keep up with rising house prices, which are projected to climb to £270,000 over the next four years.

Shelter is calling on the government to commit to building homes that people on ordinary incomes can afford, to stop the situation from getting worse.

Campbell Robb, Shelter’s chief executive, said: “When house prices are increasing six times faster than the average wage, it’s no wonder people on ordinary incomes are being locked out of a home of their own.

“With the situation only set to get worse, Generation Rent will be forced to resign itself to a life in expensive, unstable private renting, and wave goodbye to their dreams of a home to put down roots in.

“It doesn’t have to be like this. The Government has the power to turn our housing crisis around, but only if they stop with schemes like Starter Homes which only help higher earners, and start investing in homes that people on ordinary incomes can actually afford to live in.”

There are 2 Comment(s)

2 responses to “First-time buyers will need £64k salary by 2020 – Shelter”

  1. Colin Cloy says:

    Fortunately house prices will soon start to fall through a lack of demand from BTL investors especially as all their tax relief on mortgage interest will have disappeared by 2020. This will allow the FTBs on more modest salaries to enter the market but they will still need to be earning good salaries. Brexit is also likely to have a marked affect on reducing house prices if the vote leave campaign unfortunately “wins the day”.

  2. The Cynical Broker says:

    In a falling market, if you don’t have to sell, then why would you. Therefore, fewer properties come onto the market, but with all these FTB’s clambering to buy, then prices will stabilise very quickly. And before you say it, there’s unlikely to be a tsunami of landlords all trying to sell at the same time, as all they will be doing is losing more money (allegedly), something which smart people don’t tend to do. p.s. I would have thought you’d be in favour of a Brexit & the thought of sealing up our borders ???

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