The latest figures from the Office for National Statistics show that the average house price to income ratio in Yorkshire and The Humber is 6.7 – meaning that an average home in the region costs just under seven years of household income. This is significantly lower than the national average of 8.6, and London’s average where the ratio exceeds 10 years.
The region is particularly accessible for first time buyers, who do not need a large deposit in order to get on the property ladder. Government initiatives such as the First Homes scheme, which offers eligible buyers homes at a 30% to 50% discount, and the 95% mortgage guarantee scheme, allowing buyers to secure a mortgage with just a 5% deposit – around £10,000 for the average home in Yorkshire and the Humber.
Additionally, the Lifetime ISA (LISA) is a valuable tool for first-time buyers looking to save for a deposit. This government-backed savings scheme allows individuals to save up to £4,000 each year, with the added benefit of a 25% government bonus. This means that for every £4,000 saved, the government contributes an additional £1,000. By combining the benefits of government schemes, a buyer can more quickly save the £10,000 needed for the deposit on their first home.
John Howe, founder of John Howe & Co, said: “Over the past few years, we've seen property prices in Yorkshire and The Humber grow at a steady but manageable pace, which is a stark contrast to the rapid increases observed in other parts of the country. This rise in house prices has been more or less in line with the rise in the average wage, which along with Government-back schemes, means that we are amongst the best places for first time buyers to get their foot on the property ladder.”
John Howe & Co is a well-established law firm based in Pudsey, West Yorkshire. With 30 years of experience in the property dealings, specialising in residential and commercial property transactions, John Howe & Co helps clients navigate the complexities of the property market with confidence and ease.