New towns lead the way in affordability
In the past few years, many first-time buyers have found it almost impossible to purchase properties for sale in the market because of the fact that they have had to save up for a sizeable deposit, which can often creep up as high as 20 to 25 per cent.
However, it has been discovered in the findings of a new report that it may actually be easier for young people to get themselves onto the UK property ladder if they turn their attention towards the new towns of England and Wales such as Welwyn Garden City and Corby, where homes have been found to be far more affordable.
Lloyds TSB conducted the report, which showed that the average price of a house in a new town in England and Wales now sits at £182,354. This figure is 6.1 times the annual gross salary of people who live in the towns, a figure which has dropped considerably from the 6.3 times that was reported last year.
It is also the case that these are far more affordable than in other settlements, with the overall UK average seeing homes costing 6.9 times the annual median salary in the UK.
According to the bank, the main cause of this increase in affordability has been the fact that residents of these areas have seen prices stay largely static, with only a one per cent rise over the last five years, while their wages have increased by nine per cent over the same period.
Suren Thiru, housing economist at Lloyds TSB, said: "Many New Towns are within easy commuting distance of major commercial centres, where housing is typically more expensive. This is particularly striking for New Towns in the south east, where the average property price is close to half, on average, compared to that in London.
"The combination of strong earnings growth and lower priced property, together with good accessibility to the capital, has helped to support prices in many New Towns in the south east during the economic and financial downturn."
Posted at 05:00 09/07/2012