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More than half of UK homes affordable for FTBs ‒ Post Office

  • 04/09/2019
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More than half of UK homes affordable for FTBs ‒ Post Office
New analysis by Post Office Money, based on data from the Office for National Statistics, has suggested that 56 per cent of homes in the UK are in areas that are affordable for first-time buyers.


The analysis looked at 80 locations across the country and dived into affordability data for neighbourhoods within each town and city.

House price growth had stagnated over the last year, with a typical home now costing £282,713, while first-time buyer incomes have increased by 1.2 per cent to £48,289.

As a result the average house price sits at around 5.85 times the average first-time buyer income.

The most affordable area was Blackpool, Lancashire, with average house prices of £110,000 and average first-time buyer incomes of £40,053. This means that all properties in the area are deemed affordable to first-time buyers.

Other areas with similar levels of affordability according to Post Office Money are Lincoln and Hull, while Stoke-on-Trent, Southampton, Hartlepool and Wigan are all at least 90 per cent affordable for first-time buyers.

Ipswich had seen affordability improve the most over the last year, with the number of affordable homes growing by six percentage points to 88 per cent. Maidstone and Newport had also seen affordability improve sharply.

In contrast, Rotherham showed the biggest downward shift in affordability, with the number of affordable homes dropping by a fifth. As a result only 79 per cent of neighbourhoods in the city are affordable for the average first-time buyer in the area.

Ross Hunter of Post Office Money noted that while signs were emerging that we are in a “buyer’s market”, most new buyers will not yet feel the impact of that.

“Starting the journey with a clear understanding of the areas that are affordable in their desired cities will really help them get to grips with the market and their options,” he added.

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