Reading Property: Affordable hotspots in Berkshire where first-time buyers can step up the property ladder
Where is the best and most realistic place to try and climb the housing ladder in Berkshire?
BerkshireLive’s exclusive analysis of government figures revealed just how unaffordable homes in our area have become.
In parts of Berkshire, people looking to buy their first home would need to borrow almost 17 times the average income to be able to afford a home.
The analysis works by comparing the average household income in each neighborhood – areas of around 7,200 residents – with the average house prices there.
And while the numbers are daunting for Berkshire shoppers, some parts of the region are more affordable than others.
A house in a neighborhood in the Lower Earley South area of Wokingham – the most affordable in Berkshire – could be bought for 5.3 times the average household income.
There, the average household net income is estimated at £ 57,783 per year and the median house price is only £ 305,000.
You can see how your neighborhood compares by entering your zip code below:
The 10 Most Affordable Neighborhoods in Berkshire
| District | Average income | Average house price | Difference |
| Lower Earley South |
£ 57,783 |
£ 305,000 |
5.3 |
|
Southampton Street and Redlands Road |
£ 50,802 |
£ 275,000 |
5.4 |
|
Battle and Caversham Bridge |
£ 48,654 |
£ 270,000 |
5.5 |
|
Wokingham Road |
£ 48,009 |
£ 280,000 |
5.8 |
|
Coley Park |
£ 40,276 |
£ 235,000 |
5.8 |
|
Palmer Park |
£ 45,109 |
£ 265,000 |
5.9 |
|
Reading center |
£ 49,943 |
£ 295,000 |
5.9 |
|
Thatcham North East |
£ 54,024 |
£ 320,000 |
5.9 |
|
South Calcot |
£ 46,291 |
£ 285,000 |
6.2 |
|
Central Bracknell and Wildridings |
£ 41,780 |
£ 259,000 |
6.2 |
Why affordable is a relative term in Berkshire
Our list may include the cheapest places in Berkshire where house prices are closest to average incomes.
But the area is actually not affordable at all, at least if you only look at the income and ability of the average person to get a mortgage.
Since 2014, the Bank of England has set the maximum loan ratio at 4.5 times income.
Only 15% of all mortgages are allowed to exceed this amount.
Based on this maximum borrowing level, no neighborhood in Berkshire is truly affordable for those who live there.
However, it is important to note that the figures do not include any deposits that a family may have saved.
The best places to buy nationwide
The most affordable place to buy a home nationwide is in a neighborhood in the Horden area of County Durham, where the average cost of a year-round home through September 2020 was £ 38,000.
It’s just 1.6 times the average income.
Across England and Wales, the least affordable area to buy a home is in an area of Knightsbridge, Belgravia and Hyde Park in Westminster, London.
The average house price there, of 3.2 million pounds, is 91.7 times the average income.
Outside of London, the most expensive area is in the Oxshott and Stoke D’Abernon area of Elmbridge, Surrey, where houses typically sell for £ 1.1million, or 24.2 times income. way.
Overall, only 17% of neighborhoods in England and Wales would be affordable to the average household, based on a maximum borrowing level of 4.5 times income.
Average income estimates are based on the income of each household member in 2018, including employment income, investment returns and benefits, less taxes, pension contributions and maintenance payments – adjusted for the average increase in earnings observed between 2018 and 2020.
