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First time buyers now require £41,000 wage


The average first time buyer will require a minimum income of £41,000 in order to be approved for a mortgage, according to a report from KPMG.

The figure comes to almost double the UKs average wage of £22,000, and shows that the difference between house prices and wages has grown so wide that affordability is now an issue for all first time buyers but the very top earners, or people who inherit money.

First time buyers in London have it even worse, and require a massive £77,000 wage to get onto the property ladder. In London, the average worker earns £28,000.

The figures form KPMG are based on buyers with a 10% deposit and have borrowed the rest of the money at 4.5 times their annual income. The figures vary greatly from region to region, with the South East requiring a wage of £46,010 at the top of the scale after London, and Northern Ireland at the other end, requiring buyers to have an income of £21,219.

Jan Crosby, head of housing at KPMG said:
“These figures make for frightening reading and show that housing affordability is no longer just a problem for lower wage earners.
"Now unless you earn well above average or receive an inheritance, it is unlikely you will be able to afford to buy, no matter where in the UK you live.”

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