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Why You Should Move Country If You Want To Buy A House

22/02/2017 16:41

Nicknamed 'generation rent', it is now harder than ever for young first-time buyers to get a foot on the property ladder. The current average age of a first-time buyer in Britain is 30 to 33 years, a whopping five years older than what it was 20 years ago.

Renting is not a super appealing option either. Those wanting to reap the career benefits of working in London will have to pay two thirds of their monthly pay packet for a two bed flat. It's these kinds of prices that make you want to cry into your £6 quinoa salad on your two hour commute to work everyday.

It's not surprising, then, that young people are more likely to want to have their own property, rather than hand over the equivalent of the cost of a second hand ford fiesta to a landlord every month.

But as we all know, buying your first home as a millennial these days is no hop, skip and a jump, especially for those wanting to invest on their own. Recent findings have shown that it would take someone earning the average London wage five years to save up for a deposit in the capital's more affordable boroughs. Those setting their sights on Kensington and Chelsea will have to save for 68 years for a deposit on the average salary. Even surviving in London for that length of time feels dubious when we read the latest toxicity levels.

Moreover, London isn't the only place where it's difficult to buy property. According the latest ONS and Land Registry figures, house prices outside of London are growing faster than in the capital.

New research from relocations firm MoveHub has shown that the UK ranks as one of the hardest countries for first-time buyers. The data shows that the average British property price is quickly outgrowing its wage increase. In 2016 the UK saw an average wage increase of a 2.30% compared with a property price hike of 5.70%.

However, the future isn't so horrifying in other countries. In Singapore, for example, following the government's action to cool soaring house prices, property prices dropped by 3.37%, while salaries grew by a generous 3.7%.

Closer to home, Switzerland offers some good prospects for young people. Last year, the people of Switzerland enjoyed a wage increase of 2.50% and a housing market that dropped by almost 1%. Although Swiss house prices are no way near cheap, the nation offers the highest wages in Europe. Swiss millennials can now get a 1.5% mortgage for a ten year deal.

Compared to other nations, the UK seems to be doing little to tackle the current housing crisis that is facing young people. The BBC's investigation into the government's help to buy scheme found a disparity across England. One in three new properties outside of London were bought through the scheme, but only one in 10 new properties were bought in London. This doesn't help soften London's image as a black hole that sucks 20 somethings into a lifetime of renting.

The government's latest pledge invest 7.1 billion to build new affordable homes has to be as 'bold' and 'radical' as it says it will be, otherwise Britain will lose its brightest and best young people to countries where buying property isn't a pipe dream.

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