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Northampton has been named in the top 50 least affordable locations in the UK for first-time home buyers, with average earners needing to borrow many times their salary to get on the property ladder.

Compiled by online mortgage broker Mojo Mortgages, the figures analysed salary data from the Office of National Statistics and January 2022 property valuation data from Zoopla to establish the average income multiple required to buy a property in 100 locations.

The company found that house prices in Northampton command an average price tag of £295,397.

Average earners may struggle to afford their forever-homes, leaving them to rent far more than they otherwise would like to

With town residents typically earning £30,966 a year, the data suggests a couple that had saved a 15 percent deposit would have to borrow 4.05 times their salary for a mid-market home.

Much of this steep pricing, which the BBC reports has seen their largest annual increase for 17 years, comes from 'pent-up demand' that was suppressed during lockdown, according to the report.

Other government incentives including the stamp duty holiday and First Homes scheme were also cited as contributing factors.

But there were concerns that these demand-side solutions might be pricing people out of their home regions, as the price of their homes grow inordinately larger than the wages meant to pay for them.

Richard Hayes, CEO and co-founder at Mojo Mortgages said the statistics are further evidence that first-time buyers are being squeezed out of many locations where they grew up or work.

He said: “First-time buyers could now borrow as much as seven times their salary – but this would be a big stretch for many couples who would struggle to buy a property in Northampton and would be even higher for those thinking about buying on their own.

“Lack of affordable housing has repercussions, not only for the individuals involved but the wider economy and community if workers in lower-paid jobs are priced out of the market.

“Enabling people to borrow more might help them onto the property ladder but much will depend on their circumstances as lenders and brokers must apply strict affordability checks. It’s also important that buyers weigh up whether the location offers the best quality of life for them.”

You can read the full report, listing data on all 100 locations, online.

Northampton named in top 50 least affordable locations in the UK for first-time home buyers in mortgages ranking