New data from Nationwide Building Society has found that first-time buyers need to have 5.5 times their typical annual earnings to get on the property ladder, this number increasing to 9 times in London.
“In the third quarter of this year, the UK first-time buyer house price-to-earnings ratio stood at 5.5, above the previous high of 5.4 in 2007, and well above the long-run average of 3.8,” said Andrew Harvey, senior economist at Nationwide.
“While there continues to be a significant gap between the least affordable and most affordable regions across the UK, this has remained broadly stable over the last year. London continues to have the highest house price to earnings ratio at 9.0, although this is still below its record high of 10.2 in 2016.”
“In 2019/20, around a third of first-time buyers had some help raising a deposit, either in the form of a gift or loan from family or a friend or through inheritance – up from 27% 25 years ago.”
For many people looking to buy their first house, being reliant on financial support from family members is essential.