Gardner says that affordability varies significantly across the country, with London, the south of England, and East Anglia experiencing notable pressures. In contrast, Scotland and the North are the most affordable regions, with mortgage payments as a percentage of take-home pay closer to their long-run average.
These variations create stark differences between those aspiring to buy and those able to do so, particularly pronounced in London. The average income of first-time buyers (for a single borrower) in the capital is approximately 55% higher than that of an adult full-time worker.
Similarly, in the South East and East of England, first-time buyers’ average income is about 25% higher than the average income in those regions.
Conversely, in regions where affordability is less strained, like Yorkshire & The Humber and the North East, incomes of actual first-time buyers align closely with average regional incomes. Furthermore, in Northern Ireland and Scotland, the average income of first-time buyers is slightly lower than the average income in those regions.
However, the Nationwide House Price Index fails to mention the North West, which has been touted as one of the top buy-to-let sectors in the country, with Savills predicting 9.2% returns for the regional market over the next 12 months. For that reason, buy-to-let investors may want to consider a buy-to-let property in Liverpool or Manchester, popular among prospective tenants and offering good-value properties with high potential rental yields.
Read More: For more information about regional property investment, check out some of our buy-to-let area guides, including:
