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London first time buyers need to earn £103,000, new study says

Published 20/06/2024, 12:36
© Reuters.  London first time buyers need to earn £103,000, new study says

Proactive Investors - Anyone looking to buy a house in London would need an income of £103,000 or two and half times the amount required in Wales and Scotland, according to property website Zoopla.

An average deposit of £60,000 is also needed for first-time buyers to get started, said the website, a rise of almost £15,000 over five years and by £2.400 in twelve months.

Zoopla based its calculation on average asking prices of £250,000 for first-time homes, a 20% deposit and 3.3 times income as a mortgage.

London is the most expensive with Wales, Scotland and the North more affordable.

Izabella Lubowiecka, senior property researcher at Zoopla said the capital is such a challenge that people are now looking at cheaper options to improve affordability.

In Wales, first-time buyers need an income of £38,800 and in Scotland an income of £31,500.

The Building Societies Association (BSA) today added that more than half (56%) of people think the deposit required to buy a home is too high, rising to nearly two-thirds (63%) of first-time buyers.

Read more on Proactive Investors UK


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