10 Jul

"Almost impossible" for low-income couples to buy property

"Almost impossible" for low-income couples to buy property

The Royal Institution of Chartered Surveyors (RICS) has found that a low-earning young couple on £27,516 would need to save their entire combined yearly salary to meet the up-front costs of buying a home.

In 1996, those in the lower quartile earnings bracket would have only needed to spend 21 per cent of their annual wages on purchasing a property.

The organisation suggested that this decline in affordability has been fuelled by the reductions in loan-to-value rations mortgage lenders are offering, in addition to the "continued burden of stamp duty".

On a more positive note, it also found that low-income couples who do manage to get onto the property ladder will now spend less of their earnings on servicing their mortgage.

"Access to the housing market has deteriorated as the credit crunch has taken hold of the mortgage lender sector," RICS senior economist David Stubbs commented.

Although low earning couples looking to buy their first home may struggle, the National Association of Estate Agents recently suggested that buyers are in a strong position because of falling house prices.

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