New data reveals opportunity for first time buyers to outperform housing market
Recent data has revealed that First-time buyers in the UK need an average income of £54,000 in order to buy a property, marking a 9% rise from 2016 when Britain decided it would leave the European Union.
Looking at the data released from property website Zoopla this month, it’s fair to say that Millennials have had something of a raw deal when it comes to their finances. From soaring house prices, inflation exceeding earnings, through to political and economic uncertainty with Brexit – getting onto the property ladder has never been more difficult.
Those wanting a start on the housing ladder will often face a never-ending stream of negativity, with many believing it’s near impossible to buy their first home as they cannot raise enough money. This has created a new opportunity for first time buyers to act more savvy and to selectively invest in Buy to Let property in national growth locations.
Data released by Zoopla found that the average household income required to buy in London was £84,000. In Liverpool, which had the lowest required household income before tax of the 30 cities surveyed, it was just £26,000.
Current house prices are encouraging huge rental demand in the UK’s busiest cities with young professionals flocking to areas like Manchester, Birmingham, Newcastle and Liverpool. Purchasing a one or two bedroom apartments as a Buy to Let in these locations is a shrewd investment for those priced out of their home town or city.
While Liverpool was named the most affordable market for first-time buyers, it was also the city with the highest house price growth, with values rising 5% over the 12 months April to April.
