Jump to content
House Price Crash Forum
Sign in to follow this  
Parkwell

What Is It Like Being The Average First Time Buyer?

Recommended Posts

I had a quick look at the most recent ONS stats and this is what I found.

Q1 2016:

Average FTB home price in UK = £211,000

Average FTB mortgage = £161,000 (76.3%)

Average income of FTB borrowers = £50,000

2014:

Average age of FTB = 31 (60.2% aged 25-34)

Apr 2015:

Median gross annual earnings for

full time employees (30+hrs/week) = £27,600

aged 22 - 29 = ~£22,511

aged 30 - 39 = ~£29,198

sources

http://www.ons.gov.uk/economy/inflationandpriceindices/datasets/housepriceindexmonthlyquarterlytables1to19

http://www.ons.gov.uk/economy/inflationandpriceindices/datasets/housepriceindexannualtables2039

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2015provisionalresults

Share this post


Link to post
Share on other sites

The people I know in 20s....have no interest in buying a place....simply not achievable....no life, dependent on others and lots of help......life is short.

To buy a place today at the same age many could buy yesterday, on one wage with own savings and still had a life....those days have gone now for a growing number of young people. ;)

Share this post


Link to post
Share on other sites

I can echo the above for those in the SE. People just live with their parents.

Up north it's a different matter though of the few I know. Most are home owners scraping by. They'd definitely be ones with less than 500 quid spare.

Share this post


Link to post
Share on other sites

I can echo the above for those in the SE. People just live with their parents.

Up north it's a different matter though of the few I know. Most are home owners scraping by. They'd definitely be ones with less than 500 quid spare.

Yes in London and SE...living with parents or a shared house like students but working full time.......No way could the kids of today same age, doing exactly the same job, buy the same property......sold down the river big time. ;)

Edit to say:......could in a strange kind of way work out to be an advantage not a disadvantage, I would advise them today not to buy, just my opinion, the tipping point has passed the equilibrium.....

Edited by winkie

Share this post


Link to post
Share on other sites

The average FTB in London needs £77,000 https://www.theguardian.com/business/2015/may/04/first-time-buyers-need-to-earn-77000-a-year-to-live-in-london.

And that was last year, so will have increased since then.

Plus think what 3.5x of that salary gets you. £269,000 so a flat in zone 5 or 6.

So what percentage of FTBers in the age bracket of 20 to 35 say earn £77,000.......having it out with someone today who is sure most people that live in London, within M25 are on + £50k salaries and £70k not out of the ordinary.....what world are they living in I wonder? ;)

Share this post


Link to post
Share on other sites

London was £84k salary buying a £414k property with a £123k(!) deposit and £291k mortgage in Q1 from the ONS data Parkwell posted

Share this post


Link to post
Share on other sites

London was £84k salary buying a £414k property with a £123k(!) deposit and £291k mortgage in Q1 from the ONS data Parkwell posted

How many first time buyers earn £84k......5%?.........how many first time buyers have £123k in cash savings....2%?

What about the 95%?

Share this post


Link to post
Share on other sites

I had a quick look at the most recent ONS stats and this is what I found.

Q1 2016:

Average FTB home price in UK = £211,000

Average FTB mortgage = £161,000 (76.3%)

Average income of FTB borrowers = £50,000

2014:

Average age of FTB = 31 (60.2% aged 25-34)

Apr 2015:

Median gross annual earnings for

full time employees (30+hrs/week) = £27,600

aged 22 - 29 = ~£22,511

aged 30 - 39 = ~£29,198

sources

http://www.ons.gov.uk/economy/inflationandpriceindices/datasets/housepriceindexmonthlyquarterlytables1to19

http://www.ons.gov.uk/economy/inflationandpriceindices/datasets/housepriceindexannualtables2039

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2015provisionalresults

How does the average FTB have £50,000 deposit?!

Share this post


Link to post
Share on other sites

How many first time buyers earn £84k......5%?.........how many first time buyers have £123k in cash savings....2%?

What about the 95%?

ALL THIS tells you one thing:

It's a GIANT Pyramid-Ponzi Scam --- The Greatest Fraud in all History.... And it was/is powered/fuelled by

PREDATORY LIAR LOANS

AND THE ONLY WAY YOU CAN "BUY" TODAY IS BY

LYING.

Edited by eric pebble

Share this post


Link to post
Share on other sites

How many first time buyers earn £84k......5%?.........how many first time buyers have £123k in cash savings....2%?

What about the 95%?

You don't need to guess. The average cash deposits for FTB are available no?

There seems to be a massive denial on here on the wealth of house buyers, there is a ton of money sploshing around. Most households (ie over half) have 6 six figures liquid cash in the bank, not counting equity.

Share this post


Link to post
Share on other sites

You don't need to guess. The average cash deposits for FTB are available no?

There seems to be a massive denial on here on the wealth of house buyers, there is a ton of money sploshing around. Most households (ie over half) have 6 six figures liquid cash in the bank, not counting equity.

Less than 5% of households in the UK fit this description. Are you struggling with your percentages this week?

Share this post


Link to post
Share on other sites

Credit agency Moody's also said that Londoners borrowed more relative to their income. Around 70pc of first-time buyers borrowed more than 3.5 times their income, compared to 54pc of veteran buyers.

First-time-buyers in London had an average mortgage size of 77pc, compared to 82pc in the North West and 84.5pc in Yorkshire. Even so, first-time-buyers are still taking on more debt in more expensive areas.

Telegraph

Share this post


Link to post
Share on other sites

You don't need to guess. The average cash deposits for FTB are available no?

There seems to be a massive denial on here on the wealth of house buyers, there is a ton of money sploshing around. Most households (ie over half) have 6 six figures liquid cash in the bank, not counting equity.

Yep. And all that HPI equity. It's crashproof I tell you. Welcome to the Innocence Club.

Honestly, I don't really know the difference between average and median. You would be crazy to trust my sums.

What is the median house price in the UK? Why does the land registry not publish this data?

All I'm saying, is if you are talking about average salaries, average minimum wages, and average house prices, you need at least pay passing consideration to average wealth

Given a falling knife, you think people from lower wealth percentiles are much much more likely to buy houses than wealthier people? Am I reading you right?

I am just one data point, but I have about average assets, and I certainly would be buying in a downfall. I think property is within 15% of fair price, so if it fell more than that I absolutely would, and I'm sure I'm not the only one.

Share this post


Link to post
Share on other sites

To buy a place today at the same age many could buy yesterday, on one wage with own savings and still had a life....those days have gone now for a growing number of young people.

Not getting any better.

2ee946p.png

How does the average FTB have £50,000 deposit?!

Over half of FTBs get money from parents.

https://www.cml.org.uk/news/news-and-views/712/

http://www.cityam.com/217861/rising-uk-house-prices-31-average-age-buying-your-first-home-and-it-rarely-comes-without

Share this post


Link to post
Share on other sites

You don't need to guess. The average cash deposits for FTB are available no?

There seems to be a massive denial on here on the wealth of house buyers, there is a ton of money sploshing around. Most households (ie over half) have 6 six figures liquid cash in the bank, not counting equity.

Equity?....what first time buyer has equity?......we are not talking people who bought their house and it has doubled in the last few years although their salary hasn't.

.....we are talking FTBers in the age range of a typical FTBer 20 years old to 35 years old.

a. In London what is the percentage of people that have purchased their first property in that age range?

b. from the percentage that have bought how many have bought in sole names, how many in joint names?

c. what deposit did the put down?

d. where did they get the deposit from?

e. what total proven income did they need to earn...joint and sole....repayment or IO and over how many years.

Was their first property with a BTL mortgage on interest only.......maybe the only way some people can get onto the ladder buying a home they are technically unable to live in......madness. ;)

Share this post


Link to post
Share on other sites

The median household income in London is about 40k. Half earn less, half earn more.

Nationwide the median is about 30k.

Earn over 100k and you are in the top 2% nationwide.

The average Londoner has savings (estimated) of about 8k. I'd expect the median to be lower.

Londoners save less, relative to salary, than other regions.

Basically, private wealth in the UK consists of housing equity and pensions.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   90 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.