Sharing a three bedroom house is most cost effective way to own a property
24-05-2012
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Its latest House Price and Affordability Index also reveals that the average asking price for a three bedroom house in the UK had risen by 0.6% over the past month.
The average mortgage repayment for a three bedroom house in the UK, spread equally between three occupiers, currently stands at £334 per person. Monthly repayments of this size account for 19% of the average net wage across the UK.
In comparison, two individuals sharing a two bedroom house would be paying £375 per month, spending 22% of their net average wage on repayments.
Sharing a four bedroom home between four people costs £424 in monthly repayments and requires the sharers to spend 24% of their monthly take home pay on repayments.
Those opting to live alone in a two bedroom house pay the biggest premium with monthly repayments of £750 per month for the privilege, equating to 43% of their monthly net income.
Houses offer better value per room than flats, according to the research, with two people sharing a flat required to pay an average £457 in mortgage repayments every month, equating to 26% of their take home pay.
On a regional level, the North East offers the lowest outgoings where, at just £233 each, mortgage repayments on a three bedroom property account for 16% of the average take home income for the region. At the other end of the scale, people longing to live alone in a house in London would spend around 84% of the net average income of people living in the capital.
‘As asking prices continue to rise, struggling buyers hoping to get a foot on the property ladder are becoming increasingly open minded when it comes to funding, and when the situation is right, sharing ownership with friends or family can be very cost effective,’ said Samantha Baden, property analyst at FindaProperty.
‘Co-owning a three bedroom property with a group of friends not only splits the monthly repayments into thirds, but also allows you to put together a bigger deposit, which gives greater freedom when negotiating a mortgage deal. Buying a property in this way also means one person doesn’t have to take the hit on other expenses, such as conveyancing, utilities and council tax, alone,’ she added.
Overall, asking prices rose by 0.4% (£911) in April to an average of £222,298. London saw the sharpest increase, rising by 0.7% (£3,492) over the course of the month to £480,923, followed by the South East and South West, which both experienced an increase of 0.6% to £277,743 and £240,489 respectively.
