New research shows
House hunters in Yorkshire would be the speediest savers when looking for their first step on the property ladder, while Londoners lag behind, despite high salaries, finds new research by Adzuna.
The study, conducted in February 2017, analysed the time it would take someone to save a 15 per cent deposit for the average three bedroom property in their area. The research considered the average advertised pre-tax salary for each UK region, and the region’s average property prices.
Property perusers in the Yorkshire area would be first to accumulate the money required for a 15% deposit on a local property after 277 days, and could squirrel away a year’s rent in just 60 days, despite being one of the lower-earning UK regions.
Londoners face wait for luxury lodgings
Londoners need to wait longer to snap up a new home, however. Although they can claim the highest average salaries in the UK, soaring property prices in the Capital mean house hunters need to save for approximately 2 years and 4 months to raise a 15% deposit for an average three bedroom property in the city.
Doug Monro, co-founder of Adzuna, commented: “Never has the North-South divide been so evident. Far from being paved with gold, it seems the streets of London are now lined with unhappy house hunters, as real estate in the Capital moves further and further out of reach for most of us. Comparatively, employees in the North, especially in Yorkshire, benefit from far lower property prices, and despite the salary gap between North and South, may well get on the property ladder far sooner!”
In the rental market, Londoners would need to save every penny of their earnings for 162 days – or just over 5 months – to stockpile a year’s rent, more than 2.5 times as long as their counterparts in Yorkshire.
The report also analysed the time it would take someone to work before they earned enough to purchase a BMW X3; jet off to Dubai for an all-inclusive holiday for one; or pay for an average wedding.
Londoners hoping to jump behind the wheel of a new BMW X3 – priced at £33,945 – would have to work 303 days, or just under 10 months. Those in the South East came in second place, earning the money required within the same calendar year. Petrolheads in the East Midlands faced the longest road to owning the car of their dreams, and would need to be frugal until the end of January 2018.
North of the border pays well, and prospective buyers benefit
In Scotland – which was behind only London and the South East in average advertised salaries – would-be buyers could have their hands on a 15% deposit in just under ten months.
Meanwhile, renters north of the border would only have to wait 65 days to have one year’s rent for an average one bedroom flat safely stowed away in their bank accounts. This is a similar time period to those in Wales, the North West, and both the East and West Midlands.
Doug Monro, co-founder of Adzuna, continued: “The higher salaries offered in London may well help city-based employees storm ahead when it comes to status symbols like cars, holidays and impressive events. When it comes to where we live however, the property bubble in the capital has expanded to such an extent that employees in other areas of the country are catching up fast. Scottish house hunters find themselves in a particularly strong position to get streets ahead.”