London borough the least affordable place in the UK
First-time buyers need an average of almost 14 times their earnings in Kensington and Chelsea
The London borough of Kensington and Chelsea has been identified as the LEAST affordable place to buy property in the UK.
Analysis by Nationwide shows the average first time buyer there needs 13-point-9 times the average local earnings to get on the property ladder.
Oxford, Cambridge, York and Cardiff were also identified as particularly unaffordable pockets of Britain to climb onto the property ladder.
Inverclyde in Scotland was identified by Nationwide as the most affordable place for people getting on the property ladder, with the average first-time buyer home costing 2.3 times local earnings.
Burnley and Hartlepool was also identified by Nationwide Building Society as among the most affordable locations to get on the property ladder, with typical property prices in those locations costing just under three times the average local wage.
Improvements in affordability
Andrew Harvey, Nationwide’s senior economist said: “A 10% deposit on a first-time buyer property is £15,000 or less in (around) 10% of local authorities, while in nearly half of areas the average deposit is between £15,000 and £25,000.”
He said around 70% of local authorities have seen an improvement in affordability over the last year.
Nationwide used average first-time buyer home prices and local earnings figures for average adult full-time worker to make the calculations.
In a further challenge to aspiring first-time buyers and homeowners, mortgage rates have been jumping in recent weeks amid changing market expectations following the conflict in the Middle East.
Hundreds of mortgage deals have also been withdrawn from the market as lenders have scrambled to make adjustments.
According to financial information website Moneyfacts, the average two-year fixed-rate homeowner mortgage on the market has risen from 4.83% at the start of March to 5.35%.
The average five-year fixed homeowner mortgage rate has risen from 4.95% at the start of March to 5.39%.
Kensington and Chelsea: particularly sought-after
Mary-Lou Press, president of NAEA (National Association of Estate Agents) Propertymark, said Nationwide’s data “highlights a mixed picture for first-time buyers across the country”.
She added: “It is positive to see affordability improving in many areas, with around 70% of local authorities recording progress over the past year, which should help support market activity.
“However, significant regional disparities remain. While some parts of the country are becoming more accessible to buyers, high house prices in areas such as London and the South East continue to create substantial barriers, particularly when it comes to saving for a deposit.”
James Nightingall, from property search service HomeFinder AI, said: “Prime central London boroughs including Kensington and Chelsea are particularly sought-after.
“Many first-time buyers are priced out and are looking in zones three to six for more affordable homes whilst others decide to continue to rent and save up a larger deposit.”