According to a recent online survey of 7000 first time buyers, the average earnings and purchase prices are a bit of a shocker. The survey revealed that the average earnings of a first time buyer is £35,000. The average first house purchase price is £169,000 and the average mortgage is £129,000, representing over 75% loan to value.
Our View
Bearing in mind that the average age of a first time buyer has crept up over the years, the income level of the average buyer is not too surprising. But, the demographics of where these people live could have bumped up the average, especially if the majority of people live around London and the South East.
Our advice to first time buyers is not to rush. If you can't afford to buy a property - save and don't borrow beyond your means. If interest rates keep rising, house prices will fall and may become more affordable.