The housing market has seen a lot of uncertainty in recent times due to Brexit and now the global coronavirus pandemic, meaning that it has been more difficult for first-time buyers to get on the housing ladder.
First-time buyer’s index
The first-time buyer’s index from Money.co.uk ranked 25 countries from across the world, based on the predicted average age of their first-time buyers. The report showed that the average age of a first-time homebuyer in the UK was around 34. Belgium and Iceland had the youngest age, with an average age of 27. France had an average age of 31, Italy and USA were 33 and Germany matched the UK with 34. The report showed that in Switzerland, buyers were waiting, on average until they were 48 to purchase their first home.
The study analysed factors such as the country’s average property price, salary and budget, the difference between the property price and budget, the deposit required and the price per square metre.
Rising house prices
With UK house prices at an all-time high according to Nationwide it’s no wonder the average age has crept up. The research showed the average annual salary is £36,024 and the average budget for a first-time property is £162,108. With a two-bedroom flat costing on average around £254,000, buyers are left with a deficit of over £91,000.
Belgians, who are able to step on to the housing ladder at a younger age, were shown to have the highest annual salary with earnings of £52,433.65 a year. At the other end of the scale, despite Switzerland also rating highly for earnings, the price of a two-bedroom flat is an eye-watering £501,000 which leaves a huge deficit and means they have to wait significantly longer to take their first step on the property ladder.
Because it can be a challenge, it is vital when starting out with a property purchase, to get financial advice to be sure of what you can afford and also independent legal advice if required. Reliable conveyancers are able to provide legal advice to assist with a purchase.
With changes being made to the Help to Buy scheme, such as regional caps on pricing and limitations to first-time buyers only, perhaps there is more hope for UK first-timers to get on the property ladder sooner.