Affordability at risk of creating housing market stalemate say Experian

News at Oakhill | 14/08/2015


The UK housing market is at risk of a stalemate as growing families in most parts of the country face unaffordable increases in mortgage size if they want to move up the property ladder, say Experian.

In 96% of UK towns, moving up the property ladder from a starter home to a larger family home, can be as challenging as getting a first foot on the property ladder.

New data shows that the difference in the average cost of a one or two bedroom home compared to a three to four bedroom property is 50% or more in 96% of UK towns.

The average price difference across the UK is 42%, leaving homeowners needing to find an additional £70,000 on average to move up.

Experian's analysis also shows that in over half of the UK's towns and cities the current average family income would not even be enough to secure a mortgage on a one or two bedroom property. The same is true in over two thirds of the UK's postal districts.

Jonathan Westley, managing director of Experian's Consumer Information Services UK&I, said: "The current housing squeeze is not only impacting on first-time buyers, but also second-time buyers; often people who have growing families and need more space. For families in some locations this can mean a choice between staying put or moving to another area in order to move up.


"Getting that first foot on the ladder is an important step, but moving on to a larger home can be as challenging, particularly given the shortage of housing in some areas and the increased focus on affordability in mortgage lending rules."