House price calculator: Where can I afford to rent or buy?
Dec 24, 2019
The map also shows which end of the local market matches your budget – so you might only be able to afford something towards the lower end of the market in Bath but your budget could stretch to property at the higher end of the market in Shropshire, for example.
If you are struggling to find a property you can afford, you may have to increase your deposit. The average deposit for first-time buyers in the UK is £25,588, according to data from the Council of Mortgage Lenders.
First-time buyers in London are looking at an average deposit of around £93,184, three times the national average. Whereas, in Wales and Northern Ireland, first-time buyers need to find deposits of less than £15,000.
More about this calculator
The “Where can I afford to live?” calculator uses pricing and rental data for the 12 months up to the end of June 2019 provided by residential property analysts Hometrack.
Monthly mortgage payments are based on the figures calculated by the Bank of England from rates currently being offered by banks and building societies. The rate used is for two year, fixed rate mortgages, so would only be relevant for the first two years of the loan.
Every month, the Bank of England brings out figures for people wanting a mortgage for 75% or 90% or 95% of the value of the property they want to buy. So currently the calculator assumes you need a deposit of at least 5% of the value of the property to get a mortgage.
House prices are based on sales recorded by the Land Registry and Registers of Scotland plus Red Book mortgage valuation – where a surveyor has valued a property for the purpose of mortgage lending.
Rents are based on monthly prices being asked for by landlords. The average rent is England and Wales is about £926.
In Northern Ireland, where much fewer properties are sold, the data includes asking prices and mortgage valuations. We have only limited rental data for Northern Ireland.
You may find that the map suggests you can’t afford to live where you are living now – but this might be because the price of property in your area and interest rates have changed since you got your mortgage. If you were trying to get a mortgage to buy your house today, you might need a bigger deposit and larger monthly payments.
If there are fewer than 25 properties matching your criteria in an area, it will come up with “no data”. Figures based on a smaller number of properties would be unreliable.