Homebuyers seeking the average house in the Colchester area need to be earning more than £40,000 a year.

The shocking figure shows that while house prices have soared to an average of £165,000, people trying to move up the property ladder face a difficult climb.

First-time buyers need to be on £23,000-a-year to buy even the smallest one-bed flat in the town. This would give you the chance of getting a mortgage for £80,000 to £85,000.

Phil Pinckard of Mortgage Eye, North Hill, Colchester, said it was almost impossible for single people trying to get on the ladder, but couples were also finding it hard.

At Mortgage Eye, he said a single person would have to earn about £22,368 for a 100 per cent mortgage, and a couple a joint income of £30,900 for the average one-bed flat.

He said: "It's very, very hard at the moment. If first-time buyers can't get on the property ladder with something small, then they can't ever get on the ladder.

"It's also very hard for couples at the moment. They keep waiting later and later to make the move to get on the ladder, but they're just stuck in a void waiting for their wages to go up."

The average two-bed flat works out at about £100,000, meaning a single person would need to earn £26,320 or a couple £36,360.

Published Thursday January 15, 2004

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