Homeownership dream fades as affordability crisis deepens – Skipton

Just one in eight potential first-time buyers can afford the average property in their area, with the situation even more dire for lower earners, research reveals.

The Skipton Group Home Affordability Index also highlights that the figure drops to one in 100 for renters earning less than £22,850.

Also, nearly 80% of aspiring homeowners lack the necessary deposit, while nearly four in 10 renters spend at least 45% of their income on housing costs, leaving little for savings.

The West Midlands, London and Wales are the least affordable regions, with Scotland and the East of England offering the best prospects for first-time buyers.

‘Have somewhere to call home’

The chief executive of Skipton Group, Stuart Haire, said: “Being able to have somewhere to call home is widely recognised as one of the most important issues facing millions of people up and down the country.

“For some, our findings paint a bleak picture, notably for first-time buyers.

“The combination of high housing costs, insufficient savings, and significant regional disparities underscores the urgent need for collaborative and targeted interventions to support aspiring homeowners.”

Government needs to focus on resolving affordability

He added the government needs to focus on resolving the affordability issue for first time buyers.

The lender’s report says that despite a brief improvement during the pandemic, overall housing affordability has deteriorated since the cost-of-living crisis began and remains at 2020 levels.

Skipton says that there are ‘limited signs of improvement on the horizon’ for affordability to improve.

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