Study reveals best locations for new home buyers in terms of affordability
The current average price of a new build home in Britain is £295,950, with a 10% deposit £29,595 taking 14.9 months to save based on an average monthly net salary of £1,993, new research has found.
The figures, based on the cost of a new home in 50 cities, show that Durham offers the best option for buyers with the average monthly salary at £1,803 and a 10% deposit on the average new build of £14,938, it would take just 8.3 months of saving.
This is followed by Dundee at 8.9 months, Stirling at 9.4, Stoke at 9.8, Glasgow at 9.9, Bradford at 10.2, Derby at 10.3 and Swansea at 10.4, according to the study from new homes firm Stone Real Estate.
Other cities where it would take under a year to safe for a 10% deposit include Sheffield at 10.7 months, Liverpool at 10.8, Lancaster at 11, Lincoln at 11.3, Nottingham at 11.5, Salford at 11.6 and Wakefield at 11.7.
The longest is in Exeter where home buyers have the worst chance of saving for a new property, with the affordability ratio between wage and deposit at 24.3 months, closely followed by Cambridge at 24.1.
London’s higher average wage means it’s not the city with the longest affordability ratio for new builds and with an average take home pay of £2,593, it would take 18.7 months to save the average new build deposit of £48,434.
Bexley is London’s best option with an affordability ratio of 14.7 months between the average deposit and the monthly take-home wage, followed by Greenwich at 15.1, Croydon at 15.5, Richmond at 15.6 and Tower Hamlets at 15.7.
‘New build properties will always carry a price premium, and for good reason, as home buyers are the first to call them home and enjoy the benefits that come with it, such as no onward chain, brand new appliances with long warranties, and the option to add their personal touch,’ said Michael Stone, chief executive officer of Stone Real Estate.
‘However, the cost of getting on the new build ladder isn’t that much higher than the cost of existing property stock and as this research shows, home buyers could pull together a deposit in some places in less than a year,’ he pointed out.