Real estate agent Nick Millican says first-time buyers in London need a £144,000 deposit if they want to purchase a home. Plus, they have to make £96,000 annually to get a mortgage. It hasn’t been this expensive in over 70 years to buy a first home. That makes London the epicenter of the crisis facing the first-time buyer in the UK, Millican explained.
Buying a home requires couples with dual incomes. Plus, they may need to get financial help from family members. This leaves single people stuck renting. Nick Millican says the main barrier to homeownership is affordability.
Very Expensive Homes
The most expensive regions of England in the south have been hit the hardest by rising mortgage rates. First-timers need to have about £144,000 for a deposit, Nick Millican said. The average first-time buyer only makes £60,000 a year. And today London has two million fewer properties.
This, with owner-occupier mortgages than in 2002 when properties were more affordable. The last time first-time buyers had this much trouble affording a home in London was in the late 1950s. If younger people can’t buy homes in London, they could end up renting forever and it can hurt the entire housing market, Nick Millican explained.
Help For First-Time Buyers
There are several starter flats costing between £350k and £400k first-time buyers can afford in London. But real estate Nick Millican said some have called for the government to make radical changes. Overall, when it comes to mortgage lending, property tax, and the private rental sector to help first-time buyers with average income.