Single and buying your first property? Maybe don't read this
Published by Max Salsbury for 24dash.com in Housing and also in Finance
If you're single and looking to buy your first property, the bad news is that you have to find an extra £24,000, according to the latest data from Move with Us.
Results from a survey of 175 estate agents across Britain showed that couples aged between 21 and 40 are the most popular type of buyer, making up 45% of the current buying market. This was followed by families on 29% and couples aged between 41 and 65 on 20%. Categories for single people in any age group came bottom of the list, making up a total of only 2.8% of buyers.
The average wage is £26,500 and the most any potential homeowner can borrow for a mortgage is four and a half times their annual wage, meaning the most a typical 'singleton' can borrow is £119,250. Move with Us based its findings on the average national price of a flat - a typical property for a first time buyer - at £158,872 with a 10% deposit taken away from this figure. That leaves a £23,735 (15%) shortfall.
Move with Us director Robin King said: "Average wages in Britain have increased 1.6% in the last year according to the ONS, compared with a 5.4% increase in the price of a flat. If property prices increase at a higher rate than wages, then of course, affordability is reduced. Bearing this in mind, it’s no real surprise that the first-time buyer market has changed over the last few years. Being priced out of the market means that many so called ‘singletons’ are choosing to stay at home or rent for longer."