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First time buyers need £77,000

Written by: Adam Williams
The average first-time buyer needs a salary of £77,000 in London and £41,000 across the whole UK to buy a home, according to a study.

The study, carried out by KPMG, found that more than two-thirds of people (69%) feel there are not enough affordable homes in the UK and 30% believe they may not be able to afford a property.

Some 72% of 16-17 year olds said they want to buy a home within ten years but this is appearing increasingly unlikely as the housing crisis continues.

KPMG said a ‘long-term, apolitical housing strategy’ was needed to prevent the housing crisis getting worse.

A first-time buyer in London would need to earn £76,971 to get onto the property ladder but the average salary in the capital is £27,999.

Jan Crosby, head of housing at KPMG, said: “These figures make for frightening reading and show that housing affordability is no longer just a problem for lower wage earners. Now unless you earn well above average or receive an inheritance, it is unlikely you will be afford to buy, no matter where in the UK you live.

“And yet this isn’t just about home ownership, because our findings show genuine concern over wider affordability of housing, whether buying or renting. Being able to live in a stable home is a basic human need, tied up with important feelings of choice and certainty,  and we are living in a world now where only a few can hope for that, which cannot be right.”

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