Majority of towns too expensive to upgrade in

A concerning new report suggests that the housing market in Britain is in danger of going stale, with expanding families being price out of moving up the property ladder by unaffordable mortgage rises.

Difficult

Data from the research conducted by Experian shows that in 265 out of 276 UK towns, moving up the ladder can prove as difficult as getting a step on the first rung of the ladder. Alarmingly, figures reveal that the average value of a one or two bedroom home in comparison to a three or four bedroom property is 50% or more in a huge 96% of British towns.[1]

At present, the average price difference across the UK is 42%, meaning that homeowners will need to find an additional £70,000 to go further up the ladder.[1]

Analysis from Experian also shows that in more than half of Britain’s towns, the current average family income is not enough to get a mortgage on a one or two bedroom property.

Jonathan Westley, Managing Director of Experian’s Consumer Information Services, said that, ‘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.’[1]

Westley acknowledges that, ‘getting that first foot on the ladder is an important step, but moving onto 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.’[1]

Gaps

The gap between property types is widest north of the border, particularly around Glasgow, where the cost of a larger property is at least double that of a one or two bedroom home. Experian’s report also shows that many towns in this area are among the least affluent in the whole of the UK.

Paul Russell, Director of Analysis at Experian’s Decision Analytics commented, ‘the price we see for larger properties in these areas may be inflated by a population of relatively affluent Glasgow commuting families. This will have the effect of driving up demand and prices for larger homes, while the stock of smaller homes is not subject to the same levels of demand, keeping prices lower.’[1]

The top ten towns with the greatest per cent property price difference, with the exception of Greater London, were found to be:

[1] http://www.propertyreporter.co.uk/property/9-out-of-10-towns-too-expensive-for-families-to-trade-up.html