First-time buyers in the UK need to earn an average £54,000 to become a homeowner, according to new data.
Zoopla’s Cities House Price Index examines 20 UK cities to measure prices and affordability.
In 2016, a first-time buyer needed an average income of £49,900 to buy, and Zoopla says the 9 percent rise in income required reflects higher house prices.
Liverpool most affordable
The cities where FTBs needed the lowest average income are Liverpool and Glasgow at £26,000. In London, a newcomer to home ownership will have to bring in an average income of £84,000 to buy property.
Zoopla says the income FTBs need to buy has dropped by 5 percent since 2016 in the three most expensive cities in the UK – London, Cambridge and Oxford – thanks to a combination of lower house prices and cheaper mortgage rates.
Strong price growth
Its index revealed that house price growth is strongest in the UK cities that are most affordable. For example, house prices in Liverpool grew by 5 percent in the last 12 months, by 4.6 percent in Belfast and by 4.5 percent in Nottingham and Leicester.
Three of those four cities feature in Zoopla’s top 10 most affordable cities by sold prices
The top 10 is:
- Liverpool (£123,000)
- Glasgow (£125,400)
- Newcastle (£128,200)
- Belfast (£135,400)
- Sheffield (£139,000)
- Nottingham (£154,700)
- Birmingham (£165,800)
- Leeds (£169,900)
- Manchester (£170,300)
- Cardiff (£209,800)
According to the Zoopla index, the current average price of a home in London is £482,000. The average price of a home across the 20 cities it surveys is £256,000 compared to the UK average of £219,000.