BBC house price calculator, where can you afford to live?
According to the BBC house price calculator, living in many parts of the UK is unaffordable. It identifies that at least a third of the UK is too expensive for renters and home buyers.
The Resolution Foundation concluded that a third of the UK’s rental properties are off-limits to lower-income working families.
However, not everyone believes that the report’s conclusions are correct. Describing the report as “alarmist,” ex-Housing Minister Mark Prisk said that rents have fallen in real terms.
The BBC housing calculator helps you work out where you can afford to live. The tool has already received a lot of interest and has been ‘promoted’ extensively on BBC television news.
BBC House price calculator
- Question: Is it cheaper to rent or buy a house?
- Answer: Who knows, it depends on some variables, try the housing calculator
To use the service, some variables need entering into the BBC’s home calculator tool, for example:-
- Do you want to rent or buy a property?
- How many bedrooms do you need?
- What’s the local housing market’s budget level that you wish to consider – cheaper, mid-price or more expensive in the home market?
- And how much you can budget for a monthly mortgage or rental payments.
Data entered into the housing calculator:
- Buy a property with a 20% deposit.
- I want a three-bedroom property.
- The cheaper end of the local market
- A budget of £600 per month
For the entry above, only 45% of the UK is affordable.
It seems that the need for higher deposits has priced out many homebuyers from owning their home (at least for now). Demand for private renting and also rents have gone up. In some parts of the country, renting is more expensive than buying a house (assuming a mortgage of 80%).
BBC home prices calculator assumptions
The ‘affordability’ calculation is dependent on the default financial information entered for home prices (actual sold prices) and house valuations (estimates or ‘best guesses’ by RICS Valuers).
The house prices data programmed into the housing calculator tool to work out mortgage costings taken from Land Registry sales information (property price index data).
Mortgage surveyors acting for lenders/banks compiled the house valuation data for the tool.
Bigger deposits are increasingly required.
Payment figures/rates quoted from the BBC housing calculator are worked out from Bank of England published rates but are apparently only relevant for the first couple of years of the mortgage/loan.
95% mortgages are nigh on impossible to get, so the assumptions are that you will need to find a least a 10% deposit.
Rental levels are calculated concerning monthly rents charged by Landlords, which ‘Homelet’ provides on its website.
Use the calculator by visiting the BBC internet site; there is no need to register or enter any personal information.
“Where can I afford to live? BBC Calculator” uses residential property analysts Hometrack rental and pricing data to the end of June 2020.
The BBC house price calculator website also provides information on UK house prices and a mortgage calculator to help research prices and plan your finances when taking out a mortgage.