Thanks to the BBC, you can now calculate where you can afford to live. Personal Loans Now explores house prices UK and affordable areas you can live.

house prices uk - personal loans now

Learning Highlights
  • The average deposit in the UK that first-time buyers manage to save is £25,896.
  • The UK housing market is localised so that the house prices UK can change from street to street.
  • The Bank of England provided this information as they release monthly figures for people who want to buy 75%, 90% or 95% of a property.

The BBC recently published an article containing a handy interactive tool that allows users to determine house prices UK and rental figures based on data collected until September 2017. This tool could help many young people understand the kind of money that they would need to rent or buy in different areas of the country. The calculator can give rental and house prices UK by the user entering the amount of money that they want to spend each month, the extent of their deposit that they have to put down and the number of bedrooms that they require.

House Prices: Using the BBC Interactive Tool

Once the tool has your budget, it will show you which counties are affordable to you. It gives three numbers, the low end of the market, the middle and the high. This allows people to see that they could afford to live in Manchester, in an average priced house, but could move to Barnsley and afford to live in a high priced house. If the deposit that you have entered is not getting you anything that you would like to live in, then you may have to up your deposit to see the results that you are looking for. You may consider taking out unsecured loan to pay for other necessities and save up for a higher down payment.

house prices uk - personal loans now

How do house prices deposits differ around the country?

Data from the Council of Mortgage Lenders reveal that the average deposit in the UK that first-time buyers manage to save is £25,896. This is a different story in London where you would need to find three times the national average to get your foot on the property ladder. The average deposit for a home in the London area is an eye-watering £98,000 for first-time buyers. It is completely different in Wales and Northern Ireland. A couple buying the first home would only need to have £15,000 to get themselves into the property market.

Where has the house price calculator collected its data from?

Hometrack, a residential property analyst, collected the data for the rental house prices UK from the six months running up to September 2017. The mortgage payments were based on the two year new mortgages that are being offered at the moment by high street banks and building societies. The Bank of England provided this information as they release monthly figures for people who want to buy 75%, 90% or 95% of a property. The calculator is assuming that the buyer will put down at least 5% of the value of the property in question.

house prices uk - personal loans now

So what have we learned so far?
  • An interactive tool on the BBC website allows people to calculate the cost of housing in the UK
  • It has rental prices and the affordability of bought housing depending on the sum of the deposit
  • The tool allows people to see whether they could afford low, middle or high priced housing in an area
  • The average house deposit in the UK is £25,896
  • In London, it is three times as much and in Wales and Northern Ireland, just £15,000
  • Rental data was collected by a residential property analyst for 6 months until September 2017
  • Bank of England Collects Mortgage Data

Choosing an area to live

There are so many factors to consider before getting a house to live in. The first thing to consider is whether you can buy a property or would prefer to rent. If you choose to stay in the area that you already live then the decision is less complicated as you already know the area. The UK housing market is localised. House prices in the UK can change from street to street. Before moving to a new area that may be more affordable, it is essential to do a lot of research on the area. You will need to spend some time there to see if it is a place where you could live happily. You could end up miserable and need to make an expensive move again.

house prices uk - personal loans now

Should I move to the country as houses are much more expensive in cities?

Some people may never be able to afford to live in a city centre. You have to pay to have everything on your doorstep. Living on the outskirts will be more affordable. However, there are travel costs to consider when you work in a city. These can be expensive, and time-consuming in daily life. Can you spend three hours of your working day on travel? Houses are more expensive in the south than the north. The amount of money that people earn, reflects on their house prices. You will earn less but you will pay a lot less for your home.

Only buy or rent a home that you can realistically afford

If you live in an expensive area is can be tempting to want to stay there to be close to your family and friends. The amount of money that you pay for rent or on a mortgage has to be affordable for you, or you will have a home but no quality of life. By going over budget and not living according to your means, you will soon see that you will get into debt as you will need money that you do not have to survive.

house prices uk - personal loans now

This could quickly lead to a person taking short term loans UK as a source of quick cash to pay urgent bills. A payday loan should be a quick fix for people with cash flow problems, not a regular occurrence. If you fail to keep up with your house repayments, your mortgage holder could end up repossessing your home. In this case, you would lose everything that you have worked so hard for. Stick to what you can afford at all costs as it is very easy to fall into debt when you live beyond your means.

Conclusion: House Prices UK

With the help of this tool, prospective home buyers can now see the type of property that they could afford the monthly repayments and the deposit needed to get a mortgage. It is also handy for people to see where would be most affordable for them to rent. People should not give in to peer pressure and live in properties that are over their budget. Doing that could potentially leave them short of money every month and force them to survive by taking instant loans.

house prices uk - personal loans now