Figures from Hampton’s International show that North Easterner’s ability to buy a home has risen by 3% since 2010, a third faster than a national rise of 2%.
Londoners meanwhile have seen their ability to buy property fall by 77% as property price rises outstrip wages.
Hampton’s Ability to Buy Index - a points-based system measuring house prices, incomes, interest rates and the cost of living – shows the national Ability to Buy fell by 3% in 2014 – and by 73% in London – but was unchanged in the North East.
First time buyers in the region have seen their ability to buy rise by 1% in the last 12 months, where as their counterparts in the capital have seen it fall by a staggering 344%.
North East households also have an average 66% of their income left after mortgage payments, compared to 34% in London and 50% across the UK.
Ajay Jagota, founder of sales and lettings business KIS, responded to the figures: “The North East has gotten used to the idea that if you want more money, you have to move to London, but these figures show that not only is it much easier to afford a house here, you’ll have much more disposable income if you do.
That’s particularly the case for first time buyers who are finding is slightly easier to get their first foot on the property ladder locally, but 344% harder in London.
It is very positive to see that people’s ability to buy a home has risen across the UK since the last election, and faster than average in the North East, if a little strange to see the figures falling back over the past 12 months despite a growing economy, low inflation and mortgage rates and falling fuel prices.
I can only attribute that to house price growth outperforming income growth, which is not necessarily a bad thing after years of falling house prices.
I was born in the Midlands and have lived in most parts of the UK before ultimately settling in the North East and starting a business here and these figures just add to what I already know. Not only is the North East the best place to have a house, it’s the best place to buy one too.”
