New data from Nationwide Building Society has revealed the amount that first-time buyers need to get onto the property ladder.
For those living in the UK who want to get onto the property ladder, 5.5 times their typical annual earnings is required – this rising to nine times the amount for those in London.
Huge numbers of people living in the UK require financial support from their families.
“In the third quarter of this year, the UK first-time buyer house price-to-earnings ratio stood at 5.5, above the previous high of 5.4 in 2007, and well above the long-run average of 3.8,” said Andrew Harvey, senior economist at Nationwide.
“While there continues to be a significant gap between the least affordable and most affordable regions across the UK, this has remained broadly stable over the last year. London continues to have the highest house price to earnings ratio at 9.0, although this is still below its record high of 10.2 in 2016.”
“In 2019/20, around a third of first-time buyers had some help raising a deposit, either in the form of a gift or loan from family or a friend or through inheritance – up from 27% 25 years ago.”
