Property price is now eight times the average UK wage
The average property in the UK is now massively out of the price range of the average worker, according to the latest report from eMoov. It said that homes now cost approximately eight times what people in the UK earn on average.
The problem becomes even more acute when it comes to London, where the price of homes is 14 times higher than the annual earnings of the average worker.
London's borough of Kensington and Chelsea tops the list of having the largest gap between earnings and house prices. With a UK-wide average income of a little over £26,000 and the average house price in the area of some £1.2 million, people are having to spend 46 times the income level to get themselves onto the housing ladder.
Other areas where people are struggling to buy themselves homes as a result of the changes in house price include the likes of the City of Westminster, where prices are 31 times the average wage, and Richmond Upon Thames, which with a house price of over £650,000 means people having to spend up to 26 times their annual income.
In the north of the country and into Scotland, people are having to spend less in relation to what they earn, with the likes of Cumbria and Burnley seeing prices come in at just four times above income levels.
Russell Quirk, chief executive officer of eMoov, said: "It highlights the unaffordability of the market in England when you consider the difference in Wales, where the highest annual average wage is under £21,000 in Cardiff yet the city’s property value is merely third in the country behind regions with lower averages in annual incomes. Additionally, the average wage in Kensington and Chelsea would take almost a lifetime working to be able to afford a home, which is unrealistic for most let alone the average buyer."
Unaffordable house prices can mean that people either spend longer saving up to get themselves a mortgage, or are renting as a long-term option rather than trying to get themselves a footing on the housing ladder at all.