Exeter is the worst city in the UK to be able to afford to buy a new build home.
Research by the new homes specialists, Stone Real Estate, has looked at where in Britain offers the best level of new build affordability, based on the earnings available, the average new build house price, and the time taken to save a mortgage deposit.
They looked at the current average cost of a new build property across 50 of Britain’s biggest cities, working out the cost of a 10 per cent mortgage deposit and comparing it to average monthly net salary to see where is home to the best affordability ratio and the quickest time to save.
Across Britain, the current new build costs an average of £295,950, with a 10 per cent deposit costing £29,595.
The average monthly net salary currently sits at £1,993 and so it would take 14.9 months for the average home buyer to save a deposit.
But hopeful new build owners in Exeter have the longest wait to save for a deposit at 24.3 months, closely followed by Cambridge at 24.1 months.
Durham tops Britain’s best cities for new build affordability - Wwile the wider property market has been tough of late in Durham, it does offer the best option for home buyers looking to save for a new build property.
With the average monthly salary at £1,803 and a 10 per cent deposit on the average new build costing £14,938, it would take just 8.3 months of saving to secure that first foot on the new home ladder.
Founder and CEO of Stone Real Estate, Michael Stone, said: “New build properties will always carry a price premium, and for good reason, as homebuyers are the first to call them home and enjoy the benefits that come with it, such as no onward chain, brand new appliances with long warranties, and the option to add their personal touch.
“However, the cost of getting on the new build ladder isn’t that much higher than the cost of existing property stock and as this research shows, homebuyers could pull together a deposit in some places in less than a year.
“Of course, a little thing called life will ensure that we can’t tuck 100% of our salary away into a property deposit fund, however, there are often two people saving for the same goal and so this research does demonstrate the areas that will see them achieve this goal in the most timely fashion.
London’s higher wage means it’s not the city with the longest affordability ratio for new builds and with an average take-home of £2,593, it would take 18.7 months to save the average new build deposit of £48,434.
