Shrewsbury first-time buyers 'squeezed out' of town by prices
First-time buyers in Shropshire's county town have to borrow almost four-and-a-half times their annual salary to get on the property ladder, according to research.
Online mortgage broker Mojo Mortgages made the finding after studying Office for National Statistics salary data and property valuation figures from Zoopla.
According to the data, Shrewsbury residents earn an average salary of £28,238, and need to borrow 4.42 times their salary to afford a £293,416 property - the average for the town - as a couple.
Richard Hayes, CEO and co-founder of Mojo Mortgages, said it’s further evidence that first-time buyers are being squeezed out of many locations where they grew up or work.
“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 Shrewsbury 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.”
The full research can be found and credited here: mojomortgages.com/mortgage-income-multiples-the-cost-of-borrowing-in-2022
