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If you’re single and looking to buy a new home, chances are you’ll need more than £70,000 to have a shot at the property ladder.
According to Rightmove, it looks like Britons will need bail of up to £74,000 to have a chance of snagging their first home.
The news comes as house prices continue to rise across the UK.
It is said that youngsters who are struggling to climb the ladder have nothing to do with overspending (or at least not fully) as the down payment required to obtain a suitable mortgage increased massively in the last ten years.
The bail figure was provided by Rightmove, which studied the example of a single average-wage buyer who was able to borrow a maximum of 4.5 times his salary to purchase an average first-time buyer, which is estimated to bring in around £223,117.
Wage figures are reported to have been provided by the Office for National Statistics and stood at £31,980 today, down from £23,764 ten years ago.
With that in mind, Rightmove calculated that the average first-time solo buyer would need to put down a 34% down payment of £74,402 to secure a mortgage.
That essentially means you need more than two years of wages, and that number doesn’t even include taxes.
House prices are rising (Image: Bloomberg via Getty Images)
Discussing the new numbers with MailOnline, Rightmove’s Tim Bannister said: “The next generation of first-time buyers is currently having to put up a down payment that’s more than 50% higher than it was a decade ago, while average salaries have only increased by 35%.
“That’s before you factor in whether you can get a mortgage, as currently if you’re buying alone you’ll need a hefty down payment of more than 30% to borrow enough to buy a typical first-time buyer home.”
The new figures come as Boris Johnson confirmed a mortgage market review would be carried out to try and get better access to 95% home loans.
Bannister claimed a review would be “very welcome” if it had the potential to support the need for such huge deposits.
He added: “It’s clear why many renters are keen to climb the ladder as they spend 40% more each month than they did a decade ago, while low interest rates mean average mortgage payments have risen by just 11% . about the same time.
“Although competition among buyers is now beginning to ease, we are still in a market where demand is massively outstripping supply in many areas of the UK.
“This has already pushed prices to record highs, so the challenge for first-time buyers to collect a deposit isn’t getting any easier.”
Bannister also claimed that in terms of how things are managed in the near term, it’s likely that more people will now be buying properties in more affordable areas to have a chance of climbing the real estate ladder.
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