FTBs 'need earnings of £50,000 to be able to afford to buy a home'

FTBs 'need earnings of £50,000 to be able to afford to buy a home'

First-time buyers in the UK now need to be earning in the region of £50,000 per year in order to be able to get themselves a foot on the property ladder, according to new research. 

The study from GoCompare said that in 51 out of the 65 cities nationwide, the average salary is below this threshold, which leaves many unable to be able to afford to buy.

There is, of course, a huge discrepancy between the cheapest and most expensive places to get onto the property ladder, however. Blackburn residents require the lowest salary of anywhere in the UK, with earnings of just £14,000 enough to get someone their first home. 

Away from Blackburn, the cheapest places for people to buy a home were reported as being Hull, Blackpool, Grimsby and Stoke-on-Trent, all of which can see people with earnings of around £15,000 getting themselves onto the property ladder. 

In contrast, those looking to own rather than rent in London would need to be making in the region of £140,000 on average for a flat, despite the fact the capital's median salary sits at around £30,000. This could mean that the majority of people in London continue to rent rather than own for the foreseeable future. 

And it's not just London that is difficult for new buyers either, with Edinburgh, Brighton, Bristol and Oxford all requiring potential owners to be earning at least £54,000 to £60,000 to be able to get themselves onto the ladder. 

Ben Wilson, home insurance expert at GoCompare, said that while London prices are always expected to be higher than elsewhere, it was somewhat "alarming" to see other cities with such high minimum earnings for buyers. 

The growing urban population may be making it harder to be able to afford a home, but with 'generation rent' being such a strong demographic at present, it could well be the case that this lack of affordability makes for a much stronger and robust rental market for years to come.