Mortgage Lenders: UK and other low-income families are having trouble buying a home. The government reports a declining middle class. England’s average income earners can only buy homes for 10% of their pay. Trends continue in this week’s data. Normal English families can’t buy a house for 20 years. Normal families could buy a home 20% cheaper before the 2008 property meltdown. In 2021, only 10% of the cheapest properties were available. 2022 data supports this claim.
In 1999, the ONS determined that the average English property cost 4.4 times the average income. “Median” is the middle number in a set. Land costs half as much as the other half. Because expensive dwellings and high incomes raise the average, the ONS uses the median instead.
In the late 2000s, housing values rose rapidly. Homes rose faster than earnings during the downturn. 2022 revenue was 8.4 times higher. People lack knowledge nationwide. South England prices are usually higher. 10% of the southeast’s wealthiest bought a home last year. London’s wealthy can’t afford simple housing.
House prices beyond the South have risen recently. English houses cost five times a family’s income. England has traditionally had high costs, but now other UK regions do too. Welsh homebuyers struggled in 2004. In 2022, residences earned 6.4 times their cost. Scots could not afford typical homes in 2006. Wages will rise 5.3 times by 2022. Northern Ireland’s living costs rose significantly in 2017. In 2016, 5.1.
These are crucial for homebuyers. Most mortgage lenders multiply your wage by 4 to 4.5 to determine your loan amount. Young people can’t buy properties when interest rates rise. Banks lend more. Nationwide loaned money to first-time homebuyers last year. They borrowed 5.5 times their annual income. 5% was put down on the house. You can think about taking out loans that are seven times your salary.
Since 2011, 700,000 English and Welsh have returned home. One-third of 25-29-year-olds live with their parents. Renters have increased by over 100% since 2001. Quitting improves your pay. Rent is costly.