20 April 2019
Research: Affordability To Buy Improves Across Some Regions
As first time buyers are eager to get on the housing market yet are finding it more and more difficult to do so, our latest research reveals that affordability is improving in eight out of 10 regions within the UK.
Single first-time buyer
The average time it takes for a single first-time buyer to save for a 15% deposit in England and Wales fell to 10 years and three months in Q4 2018. This was six months less than two years previous (Q4 2016) when it took 10 years and nine months to save – a sign that affordability has improved slightly (table 1).
This means that if a single first-time buyer started saving now, it would take them until the beginning of 2029 to be able to afford a home. Despite this being a considerable amount of time, it is optimistic that eight out of 10 regions in the UK saw a fall in the amount of time needed for a single first-time buyer to save a 15% deposit over the last two years.
Whilst affordability has improved most over the last two years in the East, East Midlands and Wales for a single person, reducing the time required to save for a deposit by nine months – Yorkshire and Humber has seen the time reduce by 3 months. The North East and North West were the only regions where time to save stayed the same.
Couple first-time buyers
Comparing first-time buyers who are single, with those that are buying as a pair/couple – the research highlights that whilst the amount of time needed to save for a deposit varies throughout the regions – most regions show no reduction in the time it will take to save yet it remains beneficial to be buying a property between 2 people rather going it alone.