Prospective homeowners struggle to get onto the property ladder
, especially in Chiswick, but new figures from the Office for National Statistics (ONS) have brought this into sharp focus.
The
ONS interactive housing affordability calculator allows would-be buyers to see the salary and savings necessary to get a mortgage on an entry-level property. And it’s not just West London that is out of reach, many neighbourhoods across the country are off-limits to first-time buyers.
Affordability calculator
The calculator uses some assumptions about the size of the deposit, the multiples of income that can be borrowed and the associated costs of moving house as well as the cost of Stamp Duty.
The data shows that a typical household in England and Wales could need an annual household income of £26,444 in order to borrow enough for an entry-level property. New buyers in London could require an income of nearly £60,000 and savings of £55,000.
With the average cost of an entry-level home in England and Wales being £140,000, prospective buyers could require £300 stamp duty, an estimated £2,000 for legal and moving costs and £21,000 for a 15% deposit, coming to £23,300 in total.
The ONS said that with the average cost of an entry-level home in England and Wales being £140,000, prospective buyers could require £300 stamp duty, an estimated £2,000 for legal and moving costs and £21,000 for a 15% deposit, coming to £23,300 in total.
A typical household in England and Wales could need an annual household income of £26,444 to be able to borrow enough for an entry-level property, while new buyers in London could require an income of nearly £60,000 and savings of £55,000.
The
affordability calculator tool makes a number of assumptions when calculating figures, which can be changed to better fit your circumstances.
