Home Property Finance & InvestmentMortgages Coupling up makes 79% of property market achievable

Coupling up makes 79% of property market achievable

by LLP Finance Reporter
14th Feb 24 12:34 pm

The latest research by London lettings and estate agent, Benham and Reeves, has revealed that by coupling up, homebuyers can increase their property purchasing potential with 79% of local authorities in Britain becoming affordable based on the mortgage loan secured at 4.5 times their joint earnings, versus just 9% when going it alone.

Benham and Reeves analysed current house price data looking at the mortgage loan required in each area of the British property market after placing a 15% deposit. Benham and Reeves then looked at buyer purchasing power based on 4.5 times income using the latest earnings data from the ONS.

Singles priced out of the market 

The research shows that the average person in Britain would require a mortgage loan of £244,632 after placing a 15% deposit of £43,170 on the current average house price. However, with the average person earning £35,481, it would make them eligible for a mortgage of just £159,665, leaving them £85,000 off the mark (-35%).

This is the case across every region of Britain, with London the worst place for single homebuyers, where even with an average salary of £47,301, they would fall £216,636 short of the average mortgage loan required across the capital.

In fact, at local authority level, just 9% of the British property market is affordable for single homebuyers when it comes to the mortgage loan required versus their mortgage purchasing power at 4.5 times income.

Coupling up boosts buyer affordability

However, by coupling up homebuyers can dramatically improve their chances when it comes to property market affordability.

In doing so, the combined income climbs to £70,962 on average across Britain. This would make a homebuying couple eligible to borrow £319,329 at 4.5 times their joint income – £74,697 more than the average sum required after placing a 15% deposit.

In fact, coupling up means homebuyers can afford to climb the ladder across every region of Britain, apart from London, where they would still fall £3,782 short of the mortgage required.

However, at local authority level, coupling up in the property market would mean that 79% of local authorities across Britain would become obtainable for buyers, versus just 9% for those going it alone.

Director of Benham and Reeves, Marc von Grundherr, said, “The initial cost of a mortgage deposit may be the first hurdle homebuyers face but it’s certainly not the last.

The sum that lenders are willing to pay based on earnings can also prove problematic, particularly for those going it alone, who will often find that they are priced out of the market despite having a hefty deposit in place.

While we don’t suggest coupling up simply to climb the ladder this Valentine’s Day, the increase in purchasing power that comes as a result of two combined incomes is substantial.

As our research shows, it can make the difference between purchasing across 79% of the property market, versus just 9% for those looking to buy alone.”

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