The UK has a thriving economy and it continues to be one of the top places to live in Europe at this time. So it does make a lot of sense to buy a house in the UK. But what income do you need in order to buy a house here?
As you can imagine, this mostly depends on a variety of factors. But the most important one is the city you choose because such a thing will bring in its own share of expenses. In order to make things easy, all the costs listed below are assuming that you have a 30-year mortgage.
Where Can You Find The Lowest House Prices In The UK?
Believe it or not, living in Liverpool is a lot cheaper than many other cities. The average house price is £120,100, and you need an annual income of around £24,731 to afford a home here. Which is quite alright for the region.
A similar situation can be found in Glasgow, where the average home price is £124,400, and the necessary income is £25,607. Newcastle is close to these two cities as well, home prices are £129,700 on average here, and the annual income is £27,015.
If you choose to live in Nottingham, the average home price is £153,400, so an estimated income needed will be roughly £31,904. Aberdeen is costlier, £164,800 home prices and £34,262 annual income required on average.
Manchester home prices are £168,300 on average, and the required income will be £34,770.
Where Can You Find The Most Expensive Houses In The UK?
Edinburgh is a great example here, because the average house price is £231,000, so the required income is around £48,277. Portsmouth has a similar situation, with £238,500 and £50,202 respectively.
However, Oxford is one of the most expensive places to buy a house in the UK, and that’s mostly because the average home price here is £423,400, and that requires a £69,750 salary per year.
Cambridge has similar prices, more specifically £431,600 on average and £74,000 in yearly income. But the most expensive place to buy a house is London. With an average price of £485,300 and a required annual income of at least £84,250, it can be very expensive to buy a home in London.
Of course, this also means the resale value is very high, but having 30-year loans at that price is very scary, especially considering the job market.
Should You Buy A House In The UK Right Now?
The housing market has evolved quite a bit in the past few years, and it continues to grow more than you might imagine. Obviously these are not the best prices, you can find those during recession times.
Based on the house market evolution in the past few years, it’s okay to buy right now. However, you do need to watch your income and earnings to ensure that you can afford a home in the city of your dreams.
As you saw above, some cities are way more expensive than others, so it’s important to adapt and adjust accordingly based on your own requirements.