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An average earner in Brighton would need to save for 104 years to buy a local property

20th October 2015

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Working people are being priced out of their home towns, as new research reveals that average wage earners would need to save for more than 100 years to afford a property locally.

According to figures compiled by HouseSimple.com the pay-as-you-go online agent, an average wage earner in Brighton would earn a salary of £23,488, meaning they would need to save for 104.2 years to raise the necessary deposit for an average priced property in the area at £350,222 .

In Bristol, an average wage earner on £27,394, would have to save for 55.1 years to afford an average priced property at £274,280.

Property prices have rocketed in Brighton in the last 10 years, largely due to the influx of London commuters who have moved out of the capital for a better quality of life. But this has had a dramatic impact on local property prices.

While Brighton is at one end of the scale, prospects are a little brighter for people living in Hull, where average salaries are £24,248, and average house prices close to a third of the price of average property prices in Brighton, at £123,864. This means that an average wage earner in Hull would only need to save for 6.1 years to have enough for a deposit.

Similarly, in Bradford, with average house prices of just £124,051, and average salaries of £24,743, an average wage earner could have a large enough deposit after seven years, to afford an average priced property in the city.

Alex Gosling, chief executive of HouseSimple.com, says: “Affordability remains a major problem across the UK. Everyone knows that London is unaffordable for all but the rich or fortunate, but these figures highlight the plight of the average person looking to buy an average priced property in their local town or city.

“The average wage earner is being priced out of their local property market, and without a serious influx of new properties coming onto the market, that’s likely to continue to remain the case.”

HouseSimple.com has looked at average salaries and average property prices in 20 major towns and cities across the UK.

The figures have been calculated on the basis that savers could put aside 10% of their salary every year for a house deposit, and that the maximum mortgage loan they could secure would be four-and-a-half times their gross annual salary.

The following table shows how long it would take an average wage earner in 20 major towns and cities across the UK to save a large enough deposit to buy an average sized property in their area.

 

Town/City Gross Annual Salary (£)* Average House Price (£)** Maximum mortgage loan of x4.5 salary (£) Size of deposit required to buy average property (£) 10% net salary put aside a year for deposit (£) Number of years required to save deposit
Brighton

23,488

350,522

105,697

244,824

2,349

104.2

London

34,720

493,026

156,242

336,784

3,472

97.0

Bristol

27,394

274,280

123,271

151,009

2,739

55.1

Cardiff

23,358

218,427

105,113

113,314

2,336

48.5

Edinburgh

29,630

254,153

133,333

120,820

2,963

40.8

Belfast

21,663

180,093

97,484

82,609

2,166

38.1

Leicester

24,586

195,213

110,635

84,578

2,459

34.4

Newcastle upon Tyne

24,970

197,206

112,369

84,839

2,497

34.0

Leeds

25,943

188,171

116,743

71,428

2,594

27.5

Nottingham

24,497

174,791

110,237

64,554

2,450

26.3

Wakefield

24,908

177,024

112,086

64,938

2,491

26.1

Sheffield

25,334

177,151

114,005

63,146

2,533

24.9

Manchester

24,053

158,963

108,237

50,726

2,405

21.1

Birmingham

26,151

167,956

117,679

50,277

2,615

19.2

Coventry

27,846

175,420

125,307

50,113

2,785

18.0

Glasgow

28,028

167,693

126,126

41,567

2,803

14.8

Liverpool

26,484

155,225

119,176

36,049

2,648

13.6

Sunderland

24,970

138,943

112,369

26,576

2,497

10.6

Bradford

23,743

124,051

106,844

17,207

2,374

7.2

Hull

24,248

123,864

109,114

14,750

2,425

6.1

1 thought on “An average earner in Brighton would need to save for 104 years to buy a local property”

  1. David Lilley says:

    You didn’t mention Oxford, which according to the BBC is the most expensive city having house prices at 16 times the average local salary.
    We need data but we need solutions far more than data.
    About five years ago four times as many property loans were going to BTL than to the first time buyer by value. Today the number is 20 despite HTB.
    House prices are so high due to supply and demand, the only law in economics, which I consider to be a technology rather than a science (I would love to discuss this). The demand escalated as 1m homeowners moved into BTL and the supply diminished as older home-owners refused to downsize as it was better to hold empty bedrooms and get Home Equity Release. The market wasn’t working due to the usual reason, misguided state intervention.
    We can fix the problem by dis-incentivising the BTL landlord and incentivising downsizing. But whilst BTL is incentivised and downsizing is dis-incentivised the problem will only get worse.

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