New average UK house price! Here is what it'll get you in 10 UK cities | Fool UK – Motley Fool UK

March 8, 2022 By admin

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Published in: 21st February 2022
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Unless you’ve been living under a rock for the past two years, you’ve probably noticed that house prices in the UK have skyrocketed. And if the average price keeps increasing as it is, you may soon only be able to afford to buy a rock anyway!
New data reveals exactly what type of property you would be able to afford in some major UK cities based on the current average home price. I’m going to show you all the latest information and explain some tips for getting a home and a mortgage. Keep reading for the latest housing scoop.
The current average price of a home in the UK is a whopping £275,00. This is based on the latest data from the ONS using prices from December 2021.
According to the findings, this is a rise of 10.7% compared to the figure the previous month! Broken down by each UK country, average house prices look like this:
What may surprise you is that London is actually the region with the lowest annual growth, sitting at a modest 5.5%.
ConservatoryLand has researched exactly what you could get for the average house price of £275,000 in 10 major cities around the UK. There’s no mention of any rocks, but here are some details on what the money could stretch to:
It is possible in some cases to put down a deposit of 5% for a home. So, based on current average house prices, you’d need at least £13,750.
However, this would leave you with a loan-to-value (LTV) ratio of 95%. This can be a higher risk for lenders, resulting in higher interest rates. So, a lower deposit like this could cost you a lot in the long run if you’re paying more interest over the lifetime of the mortgage.
A deposit in the region of 10%-20% would likely lead to much more favourable rates. But this is going to mean saving between £27,500-£50,000. And that’s just to buy an average house in the UK based on the current prices!
Saving up a chunk of change this big is going to take all the help you can get. It could be a good idea to have a play around with our mortgage calculator to try some different scenarios out.
By putting away £1,000 a month, it would take you 27.5 months (just over two years) to save up for a 10% deposit based on the current average price.
That’s a tall order to accomplish. You’ll need to use every tool at your disposal! Here are some ways to help boost your prospects and shorten the timeframe:

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George Sweeney (DipFA)
George is a freelance writer focused on educating others in personal finance, tax, and investing. He’s a qualified Financial Adviser and previously worked within property and insurance in a number of different countries.<… Read More
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