According to new research by homeless charity Shelter, by 2020 first time buyers in Manchester will need to be earning £44K a year to stand a chance of getting on the housing ladder. This stark warning is based on research which looks at the salary and deposit currently needed today by your average first time buyer and what that will look like in four years’ time if house prices increase as expected.
Shelter estimate that your average Mancunian first time buyer will need a deposit of £25,000 to keep up with house prices which are projected to rise to £165,000 by 2020.
Across the rest of the UK the situation is even more stark. Average first time home prices are set to rise to £270,000 by 2020 and wages, £64,000 leaving first time buyers even further away from their dreams of owning a property.
As a direct result of the housing shortage in the UK, over the last five years house prices have risen six times faster than wages, leaving people looking at the rental market rather than purchasing.
With the absence of affordable housing, the rental market in Manchester is forecast to grow even further over the forthcoming 18 months.