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Average age of first-time buyer is now 37: House Buyer Bureau

Average age of first-time buyer is now 37: House Buyer Bureau

When it comes to climbing the housing ladder, it’s our 40s that present the greatest degree of housing affordability compared to any other life stage. This is according to the latest research by property purchasing specialist, House Buyer Bureau,.

The company analysed the average earnings, average house price and income to house price ratio of buyers at various stages of the life cycle, to reveal at which point in their lives, the high cost of homeownership is easiest to overcome.

The research shows that those just starting out in life predictably have no hope. With the average 18-21 year old earning just £13,237 per year, they would need 21.5 times their annual income to cover the current average UK house price of £285,009.

This falls to 10.6 times salary for 22-29 year olds who earn an average of £26,800 per year, a step in the right direction but far from affordable.

With an average annual income of £34,226, 30-39 year olds have a far better chance of making it onto the ladder, with the income to house price ratio for this stage of life sitting at 8.3.

The average first-time buyer age is now 37 given this increased affordability, although with house prices remaining high, it’s pushing closer to 40 and for good reason, according to House Buyer Bureau’s research.

Those aged 40-49 earn an average annual income of £38,574 meaning that they need 7.4 times income to cover the current average UK house price, the lowest income to house price ratio of all life stages analysed by House Buyer Bureau.

House Buyer Bureau managing director Chris Hodgkinson, comments:“40 could well be the new 30 when it comes to the decade that many homebuyers finally make it onto the ladder, as house prices show now signs of falling by any significant margin any time soon, not to mention the fact that the cost of borrowing continues to climb.”

The post Average age of first-time buyer is now 37: House Buyer Bureau appeared first on Mortgage Strategy.

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