How much would you pay to live around here?
New research has today revealed that Gedling borough is the 76th most affordable place to live in the UK.
The study, carried out by MoneySuperMarket, also uncovered it will take the average couple six years to purchase a house outright in the borough.
The research was carried out using MoneySuperMarket’s mortgage affordability calculator, in combination with ONS and Land Registry data.
The firm analysed average house prices and average salaries to work out the average required deposit needed to buy a house across 441 local authorities in the UK.
The following statistics were also revealed about Gedling borough:
- Average house price is £167,517
- Average joint salary of a couple is £55,052
- Average minimum mortgage deposit required is £8,376
The analysis also showed that the local authority of Kensington and Chelsea is the most unaffordable place to live in the UK.
House prices in the area are on average £1.3million and an average salaried couple would need to accrue a 52 per cent deposit (£688,772) before buying in the area. With the combined salary of a couple living in the borough averaging £147,918, people can expect to wait approximately 23 years before they’ve saved enough to buy a home.
Kevin Mountford, banking expert at MoneySuperMarket, said the dream of owning a home was now becoming harder and harder due to rising house prices.
He said: “For those who want to take their first steps onto the ladder, reaching the minimum deposit levels required causes serious financial strain and, as our analysis highlights, many might be priced out of their desired area.
“Similarly, for those who already own their own home but are looking to take that next step up the ladder, the stretch could be a bigger burden than anticipated.
“It is important to strike a balance when relocating and prospective buyers shouldn’t stretch themselves too far. For those who want to maximise their chances of securing their dream home in their dream area, paying off debts is the best way to start, as existing borrowing will be taken into account by a lender when it comes to applying for, or extending, a mortgage.
“Reducing the amount you spend each month could also help when it comes to boosting the amount a lender thinks you can afford to borrow.
He added: “When comparing mortgages, it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account. Don’t automatically be put off by high fees, as it may be worth paying them to benefit from lower interest rates. Costs can vary greatly between providers, so taking the time to shop around and work out the total amount you have to repay over the term of the offer is essential.”
- You can read the full report on the top 50 least affordable areas here, or use the MoneySuperMarket mortgage calculator to find how much you are eligible to borrow.
