New data analysis from the Mortgage Advice Bureau shows that one in three people have delayed buying a home because of financial pressure stemming from matters such as high interest rates, steep rents and rising costs.
The research shows that a fifth have taken on an extra job to increase their funds. In 1980, the average house price was only three times the average salary but in July this year, the average house price was eight times the typical annual wage. Around a quarter of first-time buyers have seen poor credit scores make it harder to access an affordable mortgage.
High interest rates, rising costs and rents which swallow up more than a third of wages – in some parts of the country – have meant that around one in three people have delayed their purchase of a home, according to the Mortgage Advice Bureau, while a fifth have taken on an extra job to cope.
Nearly half have cut back on luxuries, while a third have cut back on socialising and 14 per cent have moved back in with their parents, according to new figures.
The average yearly pre-tax salary in the UK was £35,880 in July, while the average house price was eight times more, at £288,000.
In 1980, the average house price was only three times the average salary.
Around a quarter of first-time buyers have also been struggling with poor credit scores after the cost-of-living crisis, which has made it even harder for them to access an affordable mortgage.
Ben Thompson, Deputy CEO Mortgage Advice Bureau, said “It’s important that buyers don’t try and time the market, as it’s nearly impossible to time the property market at the perfect sweet spot.
“For those not yet at the stage to sign on the dotted line or just starting out on the journey to homeownership, using a mortgage calculator can help you estimate how much you can comfortably borrow upfront… starting now and getting advice to become mortgage ready is key.”