This is how much you need to earn to buy your first house in Nottingham, report suggests


Published : 12th July 2019

News

In 2016, a Nottingham household needed to earn £27,800 a year to get on the property ladder. The 2019, the required income has risen 18 percent to £32,900

First-time buyers hoping to get on the property ladder in Nottingham need an average household income of nearly £33,000 a year, a report suggests.

Property website Zoopla, which analysed house prices in the UK's 20 biggest cities, said the average annual income needed ranges from £26,100 in Liverpool to £84,000 in London.

Across the 20 cities looked at, the average income needed has increased by more than £4,500 over the past three years, Zoopla said.

In 2016, a Nottingham household needed to earn £27,800 a year to get on the property ladder. The 2019, the required income has risen 18 percent to £32,900.

But there was slight relief for those trying to buy in London - the average household income needed is £3,250 less than in 2016, following three years of weak growth and small price falls in the capital.

Leicester has seen the largest percentage increase in the income required to purchase since 2016, at 20 percent, followed closely by Birmingham and Manchester (19 percent), reflecting house price growth in these cities.

The research made several assumptions, including that 30 percent of a household's take-home income is spent on mortgage costs, and that buyers borrow no more than four times their income.

The analysis expected that buyers would have a 15 percent deposit to put down, increasing to 25 percent in the more expensive cities of London, Oxford and Cambridge.

Average mortgage rates were used to calculate repayments over a 30-year term.

Richard Donnell, research and insight director at Zoopla said: "First-time buyers are an important group accounting for more than one in three sales.

"While the average household income to buy a typical home across UK cities has grown 9 percent since 2016, weaker price growth and recent price falls have led to a 5 percent reduction in the income to buy across the most expensive cities.

"It will come as a modest relief for would-be buyers although the income to purchase still remains relatively high."

Here are the average incomes needed to buy a home in 2016 followed by the figure for 2019 and the percentage change, according to Zoopla:

- Liverpool, £23,000, £26,100, 14%

- Glasgow, £23,300, £26,600, 14%

- Newcastle, £25,500, £27,200, 7%

- Belfast, £25,500, £28,800, 13%

- Sheffield, £25,800, £29,500, 14%

- Nottingham, £27,800, £32,900, 18%

- Aberdeen, £38,300, £33,700, minus 12%

- Birmingham, £29,600, £35,200, 19%

- Leeds, £31,300, £35,500, 13%

- Manchester, £30,400, £36,200, 19%

- Leicester, £31,700, £38,000, 20%

- Cardiff, £39,000, £44,600, 14%

- Southampton, £44,100, £48,500, 10%

- Edinburgh, £41,800, £48,700, 17%

- Portsmouth, £45,300, £50,700, 12%

- Bristol, £53,100, £59,500, 12%

- Bournemouth, £55,000, £62,300, 13%

- Oxford, £70,800, £68,800, minus 3%

- Cambridge, £76,000, £72,000, minus 5%

- London, £87,300, £84,000, minus 4%

Source:- https://www.nottinghampost.com/news/nottingham-news/how-much-you-need-earn-3023582