First Time Property Buyers Expect to Spend Thirteen Times Earnings in London

Prospective first-time home buyers in London in 2017 could expect to spend 13 times their earnings on property, compared with 5.5 times in the North East.

London was the least affordable region for prospective first-time buyers in 14 of the last 19 years, with the North East the most affordable for 18 of the last 19 years.

Housing became less affordable for those who bought their first house in 78% of local authorities in 2017 compared with the previous year.

Interest rates have been kept low by the European Central Bank and the Bank of England because of the frail economy. People with borrowing power have borrowed almost free money and invested in real assets like property. This has cause a ‘bubble’. There are rumoured to be over 40 000 empty properties in London.

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