Rising house prices now stand at an average 7.6 times the average annual salary, which is more than double the figure of 20 years ago, according to the Office of National Statistics (ONS).
During the financial crisis, the typical buyer would pay around 7.2 times their earnings on a property, but this figure was surpassed in 2015 (7.4 times) and again in 2016 (7.6 times).
If you compare the new figures for housing affordability in England and Wales to those of 20 years ago, the ONS say that the average price paid for a home has gone up by 259%, but more what is even more concerning is the fact that annual earnings have only gone up by 68% during this time.
Having said that, the new figures disguises dramatic regional rises. In the affluent areas of London, both Kensington and Chelsea, house prices are typically 38.5 times greater than annual earnings, but in the north-west, prices in Copeland, Cumbria, are typically 2.8 times the average salary.
On the whole, the ONS said housing affordability has worsened in all local authority districts.
Quick Selling Areas – Bright Advice – Mortgage Broker St Neots
Northampton is the fates-moving property market in the UK, according to analysis on a property portal. Properties in Northampton were listed on online property websites for the least amount of time, just 27 days.
Milton Keynes came in second place with the average time being 29 days and Croydon in third with properties being listed for just 30 days.
Regionally, properties on online sites came under offer fastest in the South East of England and the East of England (42 days) whereas properties in Wales were on online sites for the longest (66 days).
Bright Advice – Mortgage Broker St Neots
One way to make buying a house more affordable is to secure a mortgage that is best suited to your circumstances. Here at Bright Advice, we can help you secure the most suitable mortgage. For more information on any of our services, contact us today.
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