House market still a struggle
Struggling first-time housebuyers in Lancashire still need to earn more than double the average wage to get a foot on the property ladder, it was revealed today.
Despite a slump in the market during the economic downturn, many first time buyers in the county still have no hope of buying their own home.
And the recent resurgence in house prices, particularly in Preston, is set to make the situation worse, experts have predicted.
According to latest figures from the Land Registry, the average house price in Lancashire stands at 118,372 - 0.5% up on the previous month.
But the average wage is just 17,400 - a slight improvement on last year but still only 94% of the UK average.
It means that even if banks allow mortgages of up to three times a wage, the average wage falls at less than half of what is needed to afford the average home.
John Waddingham, senior partner at the Preston-based Garside Waddingham estate agents, says buyers are struggling to raise deposits.
He added: "As far as first time buyer market is concerned the big problem is the ability to get a deposit together because of the lending criteria of the banks.
"Prices over the last few years have come down but there is still a shortage of first time buyers coming to the market.
"What we need is some relaxing of the lending criteria, albeit not a return to the 100% or 125% of the boom."
The average house price in Preston as at June 2009 was 142,823 - a 4.4% increase on the previous year.
Email to a friend
Print this page
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Preston
Wednesday 23 May 2012
Today
Sunny spells
Temperature: 11 C to 18 C
Wind Speed: 13 mph
Wind direction: North west
Tomorrow
Sunny spells
Temperature: 14 C to 19 C
Wind Speed: 8 mph
Wind direction: North west
