The average UK homebuyer is still being priced out of the market unless they are purchasing with a partner, research published by Henry Dannell has suggested.

According to the firm’s findings, the multiple of salary that a lender will loan to a buyer has risen by 6.5% in the last 10 years, increasing from 3.87 to 4.12. 

While this lending criteria has traditionally sat between 4 to 4.5 times income for a single applicant, and 3.5 to 4 times income for joint applicants, last year saw lenders starting to lift caps to offer as high as 5.5 for borrowers meeting certain criteria, with some as high as 7 times income for some applicants.

The Henry Dannell research has suggested that for some homebuyers, however, even this higher rate would see them struggle with the current cost of getting on the ladder.

With the current average house price sitting at £270,708, a 10% mortgage deposit would require the average buyer to find £27,071 when looking to buy, leaving £243,637 to be borrowed. However, with the average UK income sitting at £31,447, even an above-average loan to income rate of 4.5 would leave them £102,126 short of a purchase.

Henry Dannell director, Geoff Garrett, commented: “We’ve seen some lenders relax their criteria in recent months and despite an increase in interest rates, homebuyers continue to benefit from some very favourable conditions when it comes to borrowing. 

“However, house prices have also climbed considerably and this has put a squeeze on affordability for the average buyer, particularly those attempting to go it alone without the additional support of a second income when borrowing.”

Garrett added: “With house prices expected to climb further still, it does highlight the importance of saving a substantial deposit and ensuring you find the very best deal to suit your personal situation when you are looking to agree a mortgage in principle.”

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