The plight of first-time buyers attempting to enter the UK property market is a long-standing and well-documented issue. High interest rates, escalating costs, and rents consuming over a third of wages in some regions have resulted in approximately one in three individuals postponing their home purchase, according to the Mortgage Advice Bureau. Additionally, one in five has taken on an extra job to manage.
Almost half have reduced their spending on luxuries, while a third have curtailed their social activities and 14 per cent have returned to live with their parents, as per recent statistics. The average annual pre-tax salary in the UK was £35,880 in July, whereas the average house price was eight times higher, at £288,000. Back in 1980, the average house price was merely triple the average salary.
Rising housing prices, increased interest rates rendering monthly repayments unaffordable, and the cost-of-living crisis were among the primary factors affecting home buying plans, as per the Mortgage Advice Bureau. Approximately a quarter of first-time buyers have also been grappling with poor credit scores following the cost-of-living crisis, further complicating their access to an affordable mortgage. One expert likened the housing market to a "pressure cooker ready to explode" after ONS figures for July showed an annual rent increase in the UK of 8.
6 per cent, as reported by . Could 2024 be the year to finally climb onto the property ladder? The Bank of England initiated a cu.