London

Mortgage affordability remains stable outside London  

Buying a London property with a mortgage is at its least affordable for a decade, but nationally mortgage affordability has remained steady, according to a study from Halifax.  

Across the UK mortgage affordability has remained stable at or around 30% of average disposable earnings for the past decade. The picture may be bleaker for those wanting to buy in London as mortgages become increasingly less affordable, but there is still some way to go before they reach 2007 levels, when mortgage repayments were 52.4% of earnings.  

Rising house prices have driven average mortgage payments, as a proportion of disposable earnings, to increase over the past ten years in both London and the South East. London has experienced an 18% increase, putting average mortgage repayments up to 47% of earningswhile South East average mortgage repayments are sizable at 38.8%. 

Nationally mortgage affordability has improved over the past decade 

Despite falling affordability in London and the South East, the Halifax research shows that mortgage affordability levels have improved nationally over the past ten years. In 2008, a typical mortgage payment accounted for 39% of a homeowners disposable income; today it’s 28.8%. 

In Northern Ireland, the cost of maintaining a mortgage has fallen a colossal 20% to 19%, in Scotland the cost has fallen 12% to 18%, and in Yorkshire and the Humber payments remain low at 22.6% as a proportion of disposable income, and in the North West of England at 22%. 

Today the most affordable areas are in northern England and Scotland; Copeland in Cumbria is the most affordable where mortgage payments only account for 13% of average local earnings. By comparison, the least affordable areas are London and the South East; average mortgage payments in BrentHaringey and Hackney are 61% of average local earnings. 

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT