POUND NOTES
First-time buyers face stumping up five-and-a-half times typical annual earnings to get on the property ladder, according to a report.
As house prices have surged, the average first-time buyer house price-to-gross earnings ratio in the third quarter of this year was 5.5, surpassing a previous high of 5.4 in 2007.
The figures were compiled by Nationwide Building Society, which said a 20% deposit on a home now equates to 110% of the pre-tax income of a typical full-time employee.
Andrew Harvey, senior economist at Nationwide, said: “In the third quarter of this year, the UK first-time buyer house price-to-earnings ratio stood at 5.5, above the previous high of 5.4 in 2007, and well above the long-run average of 3.8.
“London continues to have the highest house price-toearnings ratio at 9.0. Scotland continues to have the lowest house price-to-earnings ratio in the country at 3.4, closely followed by the North (of England) region at 3.5.”
A new savings account paying 2% interest has been launched by Britain’s biggest building society.
Nationwide’s Flex Regular Saver is available for current account members and has limited access for the first 12 months, after which it reverts to an instant access account.
Members aged 16 or over can save up to £200 per calendar month into the account and are allowed to make up to three withdrawals within the 12 months after the account opens.
If four or more withdrawals are made, the rate on the “limited time” deal will fall to 0.35%.
The deal is open to members who have a FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexGraduate, FlexBasic or FlexOne2 account.
Revisit lockdown saving habits