With the news that over a million workers who are on minimum wage have received a welcomed payrise this week, leading online estate agent eMoov.co.uk has looked at the affordability of property available to low income workers.
Minimum wage went up to £6.50 this week, a rise of 19 pence per hour and this now means those on the lowest legal wage are set to see their pay rise by as much as £355 a year.
Property price rise has been well documented over recent years as well as the affordability and availability of mortgages. Many would think that being on minimum wage would mean that they have no chance to get on the property ladder, however this is not the case. There are pockets of the country where owning property is possible on minimum wage, typically in County Durham, Northumberland and Sefton.
Those on minimum wage will take home £11,574 a year for a regular 37.5 hours a week job. The Council of Mortgage Lenders have the latest national average income multiple at 3.22. A 90% mortgage therefore available for those on minimal wage is £33,500.
eMoov, the leading online estate agent, now lists over 1,500 properties for sale throughout the country and has a 3 bedroom terraced house available in Edward Street, Middlesbrough for £32,000. Looking at other areas of the country you can buy a 2 bedroom house in Roxburgh Street, Liverpool, Merseyside for £32,000 Joseph Terrace, Chopwell Newcastle upon Tyne for £33,000.
Looking a little bit further south, a 2 bed maisonette in Tudor Road, Nuneaton, Birmingham or a 2 bedroom end of terrace house Arthur Street, Mountain Ash just north of Cardiff are both available for £37,000.
Property Expert Russell Quirk, CEO of online estate agent eMoov.co.uk commented “The rise in minimum wage this week and talk of further benefits in 2015 must have be welcome news to many this week. Next year’s general election fight has already started with the parties targeting votes from voters on lower incomes. Last week Ed Miliband promised to increase the minimum wage to £8 an hour by 2019 with Chancellor George Osborne saying he wanted the legal minimum to increase to £7. David Cameron has also promised to scrap income tax on minimum wage. These rises now means that at least another million people in the UK can be King or Queen of their own castle.“
eMoov.co.uk is the leading estate agency disruptor and allows home owners in the UK to sell their property for just £395. To put this into context, even selling one of the £32,000 properties listed in this article at the average estate agent fee of 1.6% would cost more. The cost of selling a £32,000 home with the average traditional estate agent would cost £512, eMoov would be saving them 23% on their selling fee.