House Prices are 6 Times The Average Wage
Published: 26th May 2017
According to a recent study carried out by eMove.co.uk it was found that the average house price in the UK is 6.05 times the average salary in the UK.
The research also revealed that there is a £6,111 gap between the wage needed for a general mortgage approval and the current average wage.
In an attempt to find the areas in which people will struggle the most to buy a home eMove.co.uk approached HM Land Registry to get house price data, and wage figures from the Office of National Statistics. They then compared the two sets of data and analysed which parts of the country people will struggle to get on the property ladder the most.
Unsurprisingly, the area with the largest disparity is London. What is staggering is the size of this disparity. The average house in London is 12.05 times the average wage. Within London Hackney had the largest gap. The average house costs £575,511 in Hackney, which is 17.03 times the average salary of £33,80. This is followed by Waltham Forest, Ealing and Harrow & Barnett.
Even though London has some of the highest wages in the country, it also has the highest deficits due to the price of the houses. The top three locations Kensington & Chelsea (£162,000), Westminster and Camden all have deficits of over £100,000.
On the other end of the scale, the north offers the best value with the smallest deficits and mortgage requirement. In fact, in Burnley the average wage is £7,379 greater than the mortgage requirement for the area.
Commenting on the research was Russell Quirk. The founder and CEO of eMoov stated:
“When London is thrown into the spotlight in terms of the unaffordability of its property market, many are quick to highlight that the wages on offer are higher in the capital. However, this research shows that despite this, the gap between what hopeful London buyers are earning and what they are having to pay for a property is still way out of kilter and climbing.’
Liddy’s Solicitors provide a hassle free, personal fixed cost conveyancing service. If you are looking to buy or sell your home then call us on 01924 780 753 to see how we can help.