House prices in the UK are rising and, as well all know, the main obstacle for many people who want to become homeowners is to save enough money for a deposit. This is a very serious problem for young couples, but it seems that those who are single and interested in living alone are in an even more difficult situation.
According to a report by Savills, only 5% of council districts in England and Wales contain single home buyers (with a salary that is average in the area) who are able to buy a decent (moderately priced) property. Of course, the same report shows that properties in South East London and Greater London are way off the radar for single home buyers. The council districts that can be considered affordable are located in the North West, The West Midlands, Yorkshire and Wales.
Single individuals who want to invest in these regions should do so right now because all the forecasts say that even the prices of these properties will grow by at least 10% in the next four years, which is sure to outpace the rise in personal incomes.
The most affordable place to purchase a home is Blaenau Gwent, a county borough located in the southern part of Wales. With average property prices at £75,000, this is affordable for single buyers. Another affordable area is North Lincolnshire where average house prices are £123,000.
Conversely, Liverpool is at the top of the list of areas where many single buyers simply can’t afford to buy a home based on their average salary. Most lenders consider lower risk when the house is bought by a couple that has two salaries and that’s part of the problem that single buyers face when trying to obtain mortgages that they can afford.
It will be interesting to see how the ratio between single people who decide to buy versus those who rent will play out over the coming years.