According to one of the leading UK’s leading lenders, 2021 saw new buyers boost the housing market by a record rate.
The rate in which house prices are growing is far surpassing the growth of incomes. The average price to earnings ratio for First-time Buyers in the UK is currently standing at 6.9 times average earnings, says the report.
With many lenders offering a maximum of 5X income, this will surely mean that many new buyers will need to save larger deposits than they would have in previous years.
Despite the obvious limitations on affordability, 409,370 First-time Buyers purchased a home last year which equated for a record 35% rise.
In total, these 409,370 buyers equated for 48% of the total purchases made last year.
For more information, read the full article by Roger Baird – mortgagestrategy.co.uk