Financial Conduct Authority No. 952718

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Houses Reach Their Most Unaffordable Prices In 150 Years

01 Mar

Mortgage News

Ahead of the King’s coronation on 6th May 2023, first-time buyers in the UK are hit with ever-increasing pressures as house prices reach their most ‘unaffordable’ levels in over 150 years, according to Leeds Building Society. The recent findings from the lender have shown that rates of younger adults (between the ages of 25 to 34) owning their own homes have collapsed over the last 30 years. 

If you’re a first-time buyer looking to make their first purchase this year, it is understandable that you might be concerned. However, our expert Mortgage Brokers in Northampton are well-versed in the ever-changing property market and are on hand to provide support. We have access to a vast range of products on the market from lenders and can find the most suitable product for you before you purchase. 

What Has Caused The Rise In Property Prices?

There have been a number of accumulative factors over the years that have added to the nation’s demand for homes, including a 20% rise in the UK population since 1971. 

Leeds Building Society have noted that the number of homes built since the 1960s has been consistently falling decade after decade (on average there have been around 69% fewer houses built since the ‘60s). As it currently stands, the UK population is approximately 67 million, with the average percentage of single-person households increasing to 12% (as of 2021, compared to 3% in 1971). 

Whether it’s down to ageing populations, more people choosing to live by themselves, or an increase in the number of divorces over the last 50 years, all of these factors combined have added to the increased demand for housing. In addition to this, first-time buyers currently have a higher average house price to monthly earnings ratio at 5.9 times, which is higher than ever before. The average house in the UK costs £294,329, while the average salary is £31,928. 

Speak To An Advisor To Prepare Yourself For 2023!

Despite housing hitting its most unaffordable levels and the fluctuations in the property market over the last few decades, it remains supported by strong foundations. But it comes as no surprise that many of our clients ask: “can I actually afford a home?” 

During our consultations with our Mortgage Brokers in Northampton, we discuss in-depth with our clients as to their current circumstances, before advising them on which products are available to them, so they can make an informed decision on their purchase. 

As an initial step, we would advise considering your current credit score, along with how much your current monthly outgoings are i.e. car insurance (if applicable), potential utility bills and council tax, and savings plans for your retirement. You’ll also need to consider how much money you may need to have saved for the initial deposit and fees. 

If you’re still unsure about where to start, get in touch with our expert Mortgage Advisors in Northampton! Or check out our News & Insights page for more 2023 predictions and forecasts for the property market. 

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