New stats prove Plymouth is one of the most expensive places to live

Homeownership is beyond the reach of millions of people all over the UK, but in Plymouth, the situation is out of control. New statistics from the Demographia International Housing Affordability Survey 2017 rate Devon and Plymouth as two of the most unaffordable places to live in the world!

Demographia Survey Results

The survey looked at 378 housing markets across the globe, rating median house prices for people on a middle-income. Demographia then calculates rankings by dividing median property prices by median income.

What researchers found was that homes in Plymouth are around seven times what an average person earns. In case you didn’t know, most lenders will only let you borrow 3-4 times your annual salary, so this puts homes well out of reach of all but the most affluent.

Plymouth Vs Hong Kong

To put Plymouth in context, Hong Kong is the most unaffordable place to live in the world. Homes there are 18 times higher than median incomes, so most people rent rather than buy. It probably much of a comfort to you if you are looking to buy a home in Plymouth, but consider yourself lucky for not living in Hong Kong.

The only affordable way for many people to buy a home in Plymouth is to save up a large deposit or take out a guarantor mortgage. But, that is just the first step. Just because you have the keys to your new home, it doesn’t necessarily mean you can afford to pay the bills or furnish your new home. Luckily, there are ways and means to keep costs down so you don’t have to live on a diet of baked beans for several years.

Create a Budget

Buying a home is a massive financial commitment, so you need to make sure you can afford the mortgage repayments on top of monthly bills. Lenders are far stricter these days. They have to perform stress tests to ensure borrowers can cope with a rise in interest rates, which will inevitably happen at some point.

Once you have a mortgage in place, you can start looking for a home. Consider buying a home in a less desirable part of Plymouth, so you have some spare income to spend on fixtures and fittings. Buying a home that needs a bit of work is also an option if you are able to take on some of the renovation yourself. Get stuck into the decorating and look for carpets online from the Big Warehouse Sale. That way, it won’t cost you a fortune to create a lovely family home.

Buying a Home Elsewhere in the UK

Unsurprisingly, the UK, in general, is classed as severely unaffordable for most buyers. In fact, none of the major housing markets were considered affordable, with only Leeds in West Yorkshire within the reach of middle-income buyers. And if you want to buy a property in London, you may as well forget it.