Sell My House Quickly in Reading
Sell My House Quickly found another interesting article about Reading. Reading property: Berkshire’s most exclusive and expensive areas that only the rich can live in. Differences between income and house price make it extremely difficult to buy in these areas.
Prospective homeowners in parts of Berkshire would need to borrow nearly 17 times the average income to be able to afford a house.
Exclusive analysis of government figures by BerkshireLive has revealed just how unaffordable homes across our area have become.
The analysis works by comparing average household income in each neighbourhood – areas of about 7,200 people – with the average property prices there.
In one neighbourhood in the South Ascot and Sunningdale area of Windsor and Maidenhead, the average family would need to borrow 16.6 times the local average yearly income to afford a home.
It makes it the least affordable area in Berkshire.
While the average net household income in the neighbourhood is an estimated £46,720 a year. The average house sold for a whopping £775,000 in the year to September 2020.
Meanwhile, a house in one neighbourhood in the Lower Earley South area of Wokingham – the most affordable in Berkshire – could be bought for 5.3 times the average household income.
There, the average net household income is an estimated £57,783 a year, and the median house price is just £305,000.
Why no Berkshire neighbourhoods are affordable for buyers
Since 2014, the Bank of England has set the maximum ratio of loans as 4.5 times income.
Only 15% of all mortgages are allowed to exceed this.
Based on this level of maximum borrowing, no neighbourhoods in Berkshire are actually affordable to those living there.
However, it’s important to note that the figures don’t include any deposit that a family might have saved.
We found this article on Berkshire Live. Kindly click the link to read the full story.
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