First-time buyers could be waiting even longer to get on the property ladder if their income isn’t hitting the average needed – £54,400.
Zoopla UK Cities House Price Index reveals a 9% rise in the average income required since 2016 – over £4,500 more than what you needed three years ago.
The average deposit for first-time buyers looking in a major city is currently £38,418.
Zoopla’s data shows those buying their first home have an income ranging from £26,000 in Glasgow and Liverpool to £84,000 in London.
Annual house price changes vary greatly between regions, from decreases of 4% in Aberdeen to increases of 5% in Liverpool.
Richard Donnell, Research and Insight Director at Zoopla, said: “Weakening city house price growth is a result of market fundamentals – specifically, changing affordability dynamics for home buyers and the impact of successive tax changes since 2015. Together, these have impacted household buying power, and demand for housing, hitting high priced cities more than others.
“First-time buyers are an important group accounting for more than one in three sales. While the average household income to buy a typical home across UK cities has grown 9% since 2016, weaker price growth and recent price falls have led to a 5% reduction in the income to buy across the most expensive cities.
“It will come as a modest relief for would-be buyers although the income to purchase still remains relatively high. While it is a factor behind weaker house price growth it supports underlying demand for rental homes.
“Affordability remains attractive in many regional cities where house prices have not registered the gains seen in south eastern England.
“Liverpool has the lowest income required to buy and has the highest rate of price growth at 5%. We expect prices to continue to increase in cities where housing is in reach of those on average incomes.”
While it may seem all doom and gloom, affordability has improved in three of the most expensive UK cities: London, Cambridge and Oxford. This is due to a combination of cheaper house prices and lower mortgage rates.
Throughout the rest of 2019, house price growth is expected to outpace increases in earnings, meaning more people are unlikely to be able to buy their first home and will have to continue renting.
If you’re considering getting on the property ladder, take a look at our guide on how much it really costs to buy a home.
If you’ve been thinking about renting out a property, this could be a good time to take the plunge.
Find out more about Admiral Landlord Insurance and read our other guides: