It is said that house hunters will now need to earn at least £28,400 to a purchase a home in Nottingham. The average price tag of a house in Nottingham is now between £130,000 to £137,000.
This is according to Hometrack’s UK Cities House Price Index. The latest figures show the price to buy a house in Nottingham has increased by 5% in the last year.
The last 12 months has seen house prices rise by £6,200, meaning a deposit of £6,845 would be needed to secure a property with a 95% mortgage.
According to Nationwide Data, the average price of a property in the UK is 5.1 times the average earnings. On the bright side for house hunters in Nottingham, house prices in London are 9.2 times the average earnings.
Marcus Russel, 32, currently owns three properties in Nottingham. He has just recently purchased his third home in West Bridgford. He said “I come across to any lender as quite a secure person.
“The biggest benefit I’ve had is a large deposit to put down. I think that is where the majority of people who are looking to buy, especially the younger people who are first time buyers, really struggle to get a deposit together.”
Marcus claims the problem today is not with the housing market, but with the economy.
Senior Communications Assistant at The Nottingham Building Society, Chris Kershaw, says for people not to pay attention to headline figures.
He claims although you may earn £28,400, there are various other factors that can stop you from securing a home.
“We’re always very careful to avoid headline figures, it depends on your circumstances.”
Chris Kershaw, Nottingham Building Society.
Chris Kershaw talks about the other factors that come into affordability criteria.
Explore Hometrack UK’s Cities Price Index Interactive graph on the house price growth of Nottingham throughout the last 3 years.
Ali Baylav, Managing Director of Cavendish Residential, also believes that a £28,400 a year salary may not be enough to guarantee you a home.
He claims although couples may bring home that amount of money a year, their property search may be a struggle if they do not have enough money saved for a substantial deposit to secure a property.
“There’s unfortunately this issue of the deposit which we do our best to help our clients with. Whether it’s giving them advice, or actually putting them in touch with different lenders.”
“The average price for a deposit is, every lender is different so it’s difficult to talk about what their terms and conditions might be. I would say on average it would be 20% of the actual value of the property.”
Ali Baylav talks about the costs of deposits.