Affordability gap grows to record levels
Britain’s houses are less affordable than they have ever been.
The cost of a typical family home is now seven times average earnings, according to Halifax, which found that while prices had surged by 16.8% during the pandemic, wages had increased by just 2.7%.
In the first three months of this year, the cost of a typical UK home was £279,431. The average annual earnings of a full-time worker were estimated to be £39,402, putting the house price to income ratio at 7.1. At the start of 2020, average UK earnings were £38,374 and the average house price was £239,281. That put the house price to income ratio at 6.2.
Britain’s houses are less affordable than they have ever been.
The cost of a typical family home is now seven times average earnings, according to Halifax, which found that while prices had surged by 16.8% during the pandemic, wages had increased by just 2.7%.
In the first three months of this year, the cost of a typical UK home was £279,431. The average annual earnings of a full-time worker were estimated to be £39,402, putting the house price to income ratio at 7.1. At the start of 2020, average UK earnings were £38,374 and the average house price was £239,281. That put the house price to income ratio at 6.2.
Despite experiencing the slowest rate of house price growth of any UK region over the past two years, at 5.9%, London remains by far the most expensive place to buy a home, with an average property price of £534,977.
Based on the latest estimate of regional earnings, this puts the house price to earnings ratio at 9.7, the highest of any UK region or nation, Halifax said. This compares with a ratio of 9 at the start of the pandemic and 6.8 in 2007.
The north-east of England is the most affordable region, with an average house price of £162,692 and a price to income ratio of 4.6.
The Times (£)
The Guardian
