Analysis of government data by estate agent eXp UK has found that the average house price in Britain has increased by 5.3 times the rate of earnings in the past year.
The current average house price now stands at £271,403, an increase of £10,087 over the last year. The average annual salary has risen by just £1,921 over the same period, from £38,413 to £40,334.
The greatest disparities were found in the East of England and East Midlands, where house prices stripped earnings growth by 6.7 times. Pronounced differences were also found in Scotland (6.4 times), Wales (6.3 times), Yorkshire and the Humber (5.8 times), and the North East (5.8 times).
Even London, where workers generally have higher salary levels due to regional weighting, saw house prices rise 4.7 times faster than earnings. The same figure was found in the West Midlands, with the North West (3.8 times), South East (3.7 times) and South West (3.3 times) showed relatively lower, but still substantial, gaps.
Adam Day, head of eXp UK and Europe, commented:
“This research underscores the continued challenge for homebuyers as property values continue to rise significantly faster than incomes. With house prices growing more than five times quicker than earnings nationwide, buyers face increased pressure and reduced affordability.
“Regional variations highlight that while some areas remain relatively accessible, many buyers will continue to find the market increasingly difficult to enter or move within.”
eXp UK analysed government data on the current annual increase in both house prices and earnings across each region of the UK, using house price data sourced from the government’s UK House Price Index and earnings data from the Office for National Statistics.The
