SOUTHAMPTON has become unaffordable for the first time to first time buyers, suggests new data.

The Q2 2021 Property and Homemovers Report has shown that first time buyers are unable to buy a house in the city without access to additional deposit funds of over 10 per cent.

The report by property and data insight specialist, TwentyCi shows that the average loan to income value for properties in the area stands at 4.6.

The company says that due to mortgage lenders being limited by the Financial Conduct Authority on the number of mortgages they are allowed to issue at more than 4.5 LTI, this rules out Southampton for a lot of first time buyers.

Colin Bradshaw, Chief Customer Officer at TwentyCi, said: “Getting on the property ladder has always been tricky, however, for people in Southampton it is now impossible without additional funds over and above an average mortgage and a 10 per cent deposit.

“As we know the pandemic has changed the way people live their lives and as a result of this and a generous fiscal policy the property market is booming.

“However, with the stamp duty holiday coming to an end it remains to be seen whether there will be a significant increase in transactions falling through as a direct consequence of missing the incentive of the deadline.”

It is said that the lack of affordability is being further exacerbated by the acute lack of stock coming to the market and aside from London, the whole of England and Wales at a regional level has between two and 1.7 months of property stock left to sell.

Overall, the available months of stock numbers are down by half on historical norms with the South West having the lowest level of houses for sale, whilst Inner London currently has the most.

The lack of stock is resulting in demand outstripping supply which is driving up house prices and now, the report shows that the average asking price across the UK is £391,000 compared to £361,000 in Q2 2019, an increase of 8.3 per cent.