Burnley tops poll as one of most affordable places to live in the UK
Burnley is the third most affordable place to live in the UK and house prices are also the cheapest in the country.
And figures show that when factoring the average household spend and the average salary for a couple in the town it would take them three or four years to save up to buy their first home outright.
This is compared to some parts of the country, including London, where it could take up to 27 years to save up for a deposit on a home.
The average house price in Burnley is £74,317 and a couple earning a joint salary of £49,104 would need a minimum deposit of around £3,715.
In some regions it would take buyers over 10 years to afford a minimum deposit and in 20 % of the UK's local authorities house buyers would be looking at putting down a deposit of around £50,000.
The situation is particularly bad in London, with boroughs in the capital occupying 16 of the top 20 spots requiring the biggest house deposits relative to their average salaries.
Using its mortgage affordability calculator, in combination with ONS and Land Registry data, MoneySuperMarket analysed average house prices and salaries to work out the required deposit needed to buy a house across 441 local authorities in the UK.
The analysis shows that the local authority of Kensington and Chelsea are the most unaffordable place to live in the UK.
House prices in the area are on average £1.3million and an average salaried couple would need to accrue a 52 per cent deposit of £688,772 before buying in the area. With the combined salary of a couple living in the borough averaging £147,918, people can expect to wait approximately 23 years before they’ve saved enough to buy a home.
Westminster and Camden follow Kensington and Chelsea in the list of unaffordable places, requiring deposits of £554,996 and £490,738 respectively.
In Camden, where the average deposit figure is 56.60 per cent, that equates to saving for 27 years, the longest of any area in the UK.
Outside London, South Bucks, Chiltern and Elmbridge feature prominently in the top 20, with all requiring deposits of over £200,000.
To add insult to injury, in 93 local authorities (20 per cent) the average minimum deposit needed is greater than £50,000, and in 51 it’s over £100,000.
Kevin Mountford, banking expert at MoneySuperMarket, said: “As house prices continue to rise, the dream of owning a home becomes harder and harder to reach for so many people.
"For those who want to take their first steps onto the ladder, reaching the minimum deposit levels required causes serious financial strain and, as our analysis highlights, many might be priced out of their desired area.
"Similarly, for those who already own their own home but are looking to take that next step up the ladder, the stretch could be a bigger burden than anticipated.
“When comparing mortgages, it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account.
"Don’t automatically be put off by high fees, as it may be worth paying them to benefit from lower interest rates. Costs can vary greatly between providers, so taking the time to shop around and work out the total amount you have to repay over the term of the offer is essential.”
For more information go to https://www.moneysupermarket.com/mortgages/mortgage-deposit-deficit/