Norfolk homebuyers need 9 x income to cover the average price of a home
The latest research from over-50s property specialists, Regency Living, has revealed that the average person in Norfolk needs to spend nine times their annual income to cover the cost of the average home, higher than the national average which currently stands at 8.5 times income across England.
The research by Regency Living analysed current housing market affordability based on the income to house price ratio required across each area of Norfolk and how this compares to the national benchmark.
The research shows Norfolk's growing property market popularity has ensured that the property market has remained steadfast despite the economic headwinds that have hit the nation in recent years.
Norfolk income to house price ratio sits at 9 times annual earnings
Whilst the average house price across the county has increased by just 0.6% over the last year, areas such as Broadland (£332,051), South Norfolk (£390,051) and North Norfolk (£308,884) all boast an average house price above that of the national average of £305,270.
With the average income across the county currently standing at £30,627, the average homebuyer requires nine times their annual earnings to cover the average house price of £275,538.
In North Norfolk, this income to house price ratio climbs as high as 11.4 times income, with Broadland (10), Breckland (9.4) and South Norfolk (9.6) also home to a higher level of property market unaffordability versus the wider county benchmark.
To put this into perspective, the current income to house price ratio across England as a whole sits at just 8.5 times income based on the current average house price of £305,370.
In terms of the greatest degree of property market affordability, Great Yarmouth sits top, although the average buyer still requires 7.1 times their annual earnings to cover the average house price of £212,209.
Over-50s facing tough task when looking to climb the ladder
Norfolk remains a particularly popular destination for the over-50s, as highlighted by the fact that the average earnings of this age group sits almost identical to that of the wider population.
As a result, the average over-50 homebuyer requires 8.9 times their earnings to cover the average Norfolk house price, although this climbs as high as 12.5 times earnings for the average detached home.
Park homes providing more affordable route to retirement
No surprise then, that for many, downsizing to a Norfolk park home has become the path to a happy retirement. According to Regency Living, the East of England as a whole is home to an estimated 15,500 residential park homes - the third highest total of all regions of england.
Some 2,564 of these are found within Norfolk and the residential park home housing market across the county is estimated to be worth £277.7m.
The draw? Well the average residential Norfolk park home boasts an average price of just £108,338. This means that not only does the average over-50s homebuyer require just 3.5 times income to cover the cost, but those downsizing from the average detached Norfolk home can release £277,000 in equity to help them enjoy their later years.
Want to know more about the benefits of the residential park home lifestyle?
Join the Regency Living team at Forest Edge Court for their open weekend on Saturday 14th and Sunday 15th September - Great Hockham, Thetford, Norfolk IP24 1FJ.
Meet the team, explore the development and ask any questions you may have.
Find out more: Forest Edge Court Open Weekend | Regency Living (regency-living.com)
A Regency Living spokesperson commented:
"Norfolk is an incredibly popular destination for a range of homebuyers at all stages of the property purchasing lifecycle, but it has a particularly strong draw for homebuyers in their later years due to its coastal location, community feel and its slower pace of life.
However, those looking to purchase within the county are facing a tough task when doing so, as Norfolk is home to a higher income to house price ratio than the national average.
The issue of property market affordability is the driving factor that causes many older buyers to look to the park home sector. Not only can they live in prime locations, within ready made communities, and with all the luxuries of a bricks and mortar home, but they can do so at a considerably lower cost whilst releasing a good chunk of equity to enjoy their retirement with."
