Chichester, a picturesque city in West Sussex, has emerged as the second least affordable place for first-time homebuyers in the UK, following closely behind London's Kensington and Chelsea. According to Nationwide's latest index, first-time buyers in Kensington and Chelsea face a daunting challenge, needing to pay an average of 13.6 times their earnings to purchase a home. Meanwhile, in Chichester, this figure remains significantly high, reflecting the nationwide struggle with housing affordability.
Three Rivers in Hertfordshire claims the third spot on the list of least affordable places, with Rickmansworth seeing house prices that are 7.8 times local earnings. Contrast this with Aberdeen, the most affordable place for first-time buyers, where homes cost just 2.5 times the local wages. Despite a slight easing of affordability pressures across Great Britain over the past year, largely due to wage increases outpacing house price growth and marginally reduced mortgage costs, the situation remains challenging.
“The good news is that homes are very slightly more affordable than they were this time last year – the bad news is that they’re so far out of reach that a slight improvement is about as useful as a 10% discount on a diamond encrusted tiara.” – Sarah Coles
First-time buyers generally face paying five times their local earnings for a home, a figure notably above the historical average of 3.9 times. This affordability crisis has led approximately 40% of first-time buyers to seek assistance from family or friends, often in the form of gifts or loans, or through inheritance.
Rising rents add another layer of difficulty for potential homeowners trying to save for a deposit. Those working in 'elementary occupations' such as construction, manufacturing labor, and personal service jobs encounter severe affordability challenges.
“Affordability is most challenging for those working in areas classified as ‘elementary occupations’, which include jobs such as construction and manufacturing labourers, cleaners and couriers, and those in care, leisure and other personal service jobs. In these groups, typical mortgage payments would represent over 50% of average take-home pay.” – Andrew Harvey