FTB's get on property ladder 3 years earlier in north than south
Sunday, 25 September 2011 01:15
New research from the Halifax has revealed the marked difference between the affordability of housing for first-time buyers across the UK.
Tighter lending criteria has led to difficulties for first-time buyers, meaning that the average age across the UK is now 29. However, the research shows that there is nearly ten years’ difference across the UK of when the average potential homeowner makes it onto the property ladder for the first time.
The youngest first-time buyers get their first home aged just 25 in Selby, Yorkshire, whilst in Harrow, North London the age increases by nine years’ to 34.
The research shows that it is easier to get a first mortgage at a younger age in the north of England. Other areas where the average age of a first-time buyer is significantly less than the average are in Redcar and Cleveland in the North East, Barrow-in-Furness in Cumbria and Bolsover in Derbyshire.
At a regional level the differences are less pronounced. The North East, North West, Yorkshire and Wales all have an average age of 28 for a first-time buyer, whilst in London and the South East the age is 32 and 31 respectively.
Swale in Kent is the area with the youngest set of first0time buyers in the south of England; the age is just 27.
House prices tend to be lower in areas where the average age of a first-time buyer is lower. Over half of the ten areas with lowest age have an average house price of between 25 and 40 per cent less than the national average. Similarly these areas have better housing affordability conditions and the earnings ratio is lower than 4.0. Selby has the lowest, where to get a mortgage you only have to borrow 2.9 times the average wage.
Find out more: First-time buyers guide to getting a mortgage
The areas with older first-time buyers, mainly in London and the south-east, have an average house price for first-time buyers of £224,000. Areas such as Harrow, Ealing and Barnet all have an average earnings ratio of well above four times average earnings.
Perhaps surprisingly, considering the difficulties posed for first-time buyers as a consequence of the credit crunch, the average age of a first-time buyer has remained stable over time. In 1983, when Halifax records began, the average age was 28, just a year younger than today.
Nitesh Patel, housing economist at Halifax, commented: "There are several areas in the country where the average age of first-time buyers is 3 to 4 years below the national average of 29. Most of these areas are in northern England where house prices are typically lower both in absolute terms and in relation to earnings, helping to limit the size of the deposit needed. In contrast, in London and many areas of the South East the time needed to save up for a deposit can be lengthy, resulting in first-time buyers who are typically several years older than in the rest of the country."
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