According to research undertaken by homeless charity Shelter, the average first time buyer in Greater Manchester will need to be earning £44,000 a year by 2020 if they wish to take the first step onto the property ladder.
The research investigated the level of salary and deposit needed for the first time buyer today, and subsequently calculated what it would be in 2020 if it grew in line with the projected increase in house prices.
Shelter’s research found that Mancunians will require a deposit of £25,000 to keep up with soaring house prices, the average of which is expected to rise to £165,000 over the next four years.
The figures are even higher for other parts of the UK, with the average first-time home set to rise to £270,000 by 2020 and wages to £64,000, leaving many even further adrift from taking their first step onto the property ladder.
However, these figures come as no surprise when considering the fact that over the last five years, the country’s severe housing shortage has seen house prices rise six times faster than wages.
As the Government’s Housing Bill passes through the House of Lords, Shelter has warned that unless the government commits to the creation of affordable housing for the average person, the problem is only going to get worse.
Shelter’s chief executive Campbell Robb said: “Generation Rent will be forced to resign themselves to a life in expensive, unstable private renting, and [to] wave goodbye to their dreams of a home to put down roots in. It doesn’t have to be like this.
“The Government has the power to turn our housing crisis around, but only if they stop with schemes like Starter Homes which only help higher earners, and start investing in homes that people on ordinary income can actually afford to live in”, he added.