Time to tighten your belts

Huddersfield Daily Examiner - - FRONT PAGE -

THE av­er­age cou­ple needs to save for seven years to af­ford a home in Hud­der­s­field and Kirklees.

Re­search by the Reach Data Unit sug­gests that in Kirklees the av­er­age cou­ple needs to save for 7.1 years to buy a two-bed house, as it would take un­til Oc­to­ber 2025 to find the cash for a 20% de­posit. That as­sumes a max­i­mum lend­ing level of fourand-a-half times the av­er­age in­come.

This is based on a house­hold in­come of £41,480 – or one male me­dian full-time wage and one fe­male me­dian full-time wage for the area ad­justed to re­flect lower earn­ings among twenty-some­things com­pared with the over­all av­er­age.

In Kirklees, the av­er­age price for a twobed home was £126,422.

The cal­cu­la­tion also as­sumes cou­ples can put aside 10% of their gross in­come each month.

In Calderdale, it would take the av­er­age cou­ple 7.3 years, or un­til De­cem­ber 2025, to save up a de­posit of at least 20% for a two-bed home cost­ing an av­er­age of £138,423.

Across the UK as a whole, buy­ing a house in Blae­nau Gwent, Wales, is the most achiev­able. There the av­er­age price for a two-bed home is £65,334 and the av­er­age house­hold in­come is £41,160. There­fore a cou­ple could save up a 20% de­posit and be ready to buy in 3.4 years, or by Fe­bru­ary 2022.

How­ever, there are 24 lo­cal au­thor­ity ar­eas in the UK where even if you saved for 40 years, you still wouldn’t have enough of a de­posit or a high enough in­come to be able to af­ford the av­er­age two-bed home on the av­er­age house­hold in­come.

These in­clude 21 out of 32 Lon­don bor­oughs, as well as Brighton, Cam­bridge, and Hertsmere and Three Rivers in Hert­ford­shire.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.