Could your property earn more than you?
A recent study has revealed that house prices have increased so dramatically in some parts of the UK that one in four properties now ‘earn’ more than their owner. Research from the Halifax has revealed that the average house price in the UK has outpaced the average net salary in more than a quarter of local authority districts over the past two years. Over the last year alone, the number of areas where house prices have increased more than average salary has reached 108 out of the 380 districts (28%) from 73 out of 384 (19%) last year.
As expected, a large number of these areas are in London, representing 90% of the 108 areas. The largest gap found between house prices and salaries was found in Three Rivers in Hertfordshire, where property values went up by an average of £147,990 over the last two years alone.
This is clearly good news for some homeowners as the housing market continues to recover well over the last few years. But it is also a tough situation for those looking to buy their first home as increasing prices pushes it further out of reach.
Fortunately, there are several governmental schemes and initiatives to help first-time buyers save for and utilise their deposits. With the Help to Buy Equity Loan Scheme still available and the recently launched Help to Buy ISA offering bonus top-ups on deposits, there are some good options open to first-time buyers.
If you are looking to discuss buying a property for the first time, contact us and we can talk over all the latest initiatives and products to help get you onto the property ladder.