Single earners are priced out of the property market in many parts of the country, with average earnings and house prices making it impossible to save enough to buy within a lifetime, according to new research.
The study from Boon Brokers found it would be a mathematical impossibility for single earners on an average local income in privately rented property in London and Bristol to ever buy a property.
In London, average rents and expenses leave a single person on an average income with a deficit of £36 a month, while in Bristol single renters face a monthly deficit of £261.60 each month after accounting for rent, expenses and living costs.
In cities with lower average property prices, such as Manchester (£249,000) and Leeds (£240,000), single renters would need to save for around 35 and 20 years respectively to save up enough money to afford an average property with a mortgage.
Cities with more affordable purchase options such as Liverpool (£182,000) and more manageable rent costs, single renters could realistically purchase an average home after saving for just three to four years.
‘Crucially, our calculations assume best-case scenarios: no debts, no unexpected costs, and access to a mortgage of 4.5× annual income’, said Gerard Boon, author of the research.
“They also factor in first-time buyer stamp duty reductions. Yet even under these ideal conditions, the research has identified a profound structural inequity. For single applicants, rent alone – the unavoidable monthly outgoings for most single earners – is the single largest barrier preventing homeownership.”
The calculations – made using data from the Office for National Statistics, government key economic indicators, and Zoopla’s House Price Index – reveal a very different picture for adults living rent-free with family.
In this scenario, a single earner on average income in London could get on the property ladder after saving for 16.7 years, in Manchester that drops to 4.8 years and in Birmingham, Sheffield, Newcastle and Nottingham, timelines fall into a three to four year range.
But Boon points out that whether renting independently or living rent-free, the ability to buy a home is increasingly dictated by geography, financial support and the ability to find a joint applicant.
‘The data places a light on the growing inequality in housing accessibility for single earners: the ability to purchase an average property is becoming increasingly reliant on additional financial support, rather than personal financial discipline’, he explained.
“Inflation and rising living costs compound the challenge, with the ongoing increase in house prices likely to outpace savings for many first-time buyers. In effect, the housing market has become less a reflection of individual work-ethic and financial discipline, and more a measure of circumstance. Location, inherited wealth, and family support now play decisive roles in determining whether a single person can realistically buy a property.”
