A first time buyer in the North West would need an annual wage of £26,395 to get on to the property ladder, research has shown.
But the actual average annual wage in the region is just £20,723.
These figures are based on a 10 per cent deposit and borrowing the remaining 90 per cent at a loan to income ratio of 4.5.
While the North as a whole has a far closer gap between actual and required annual wage than the South, there is still an environment where only those earning over the average, or those inheriting money, can afford to buy.
But it’s not just home ownership that’s the issue – the KPMG-commissioned poll has revealed that some 66 per cent of people feel there is not enough housing in the UK that is affordable, with more than a quarter of those surveyed worried about how they will afford, or continue to afford, their own home or pay their rent.
Such figures are in stark contrast to the aspirations of people across the North West. The poll showed that we’re still a region of wannabe homeowners, with 70 per cent of people in the North West saying they’d prefer to buy than rent.
A potential reason for this desire to buy is revealed by the 58 per cent of people who agree that owning property helps save for retirement showing that, for many, investing in a home has become a de facto pension pot.
Of those not already on the property ladder in the North West, 46 per cent would like to buy within the next ten years.
Richard Evans, senior partner for KPMG in Lancashire and Cumbria, said: “These figures make for concerning reading and show that housing affordability in the region is no longer just a problem for lower wage earners.
“Now, unless you have an above average income or receive an inheritance, it is unlikely you will be afford to buy in the North West.
“And yet this isn’t just about home ownership, because our findings show genuine concern over wider affordability of housing. We again call on the next Government to act decisively on housing so that people’s basic housing needs aspirations can be met.”