Gulf between house prices and earnings narrows
Wage growth outpaced house prices, and first-time buyers now face an average ratio of 5.9 times earnings, Lloyds said.
- Lloyds reported that UK housing affordability reached its most favourable level in 11 years, with the average home costing 7.3 times earnings. Wage growth outpaced house price increases over the past year, narrowing the affordability gap.
- Despite national improvements, London and the South East remain the least affordable regions. The Royal Borough of Kensington and Chelsea, London, has an average price of £895,893 with a 17.3 price-to-earnings ratio.
- Conversely, Kingston upon Hull in Yorkshire and the Humber ranks among the most affordable, with homes costing 3.6 times earnings. Middlesbrough and Blackpool offer lower entry points at £139,678 and £141,550 respectively.
- The government's "Your First Home" initiative offers new-build properties with a 2.5 per cent deposit, with the government lending an extra 20 per cent towards the cost. This targets first-time buyers facing barriers.
- Andrew Asaam, mortgages director at Lloyds, noted "encouraging signs" for buyers, though he cautioned that affordability remains "stretched for many households." Rising mortgage rates continue to create barriers despite improved ratios.
16 Articles
16 Articles
UK homes are more affordable than they’ve been in 11 years. Here’s where buyers still struggle
The average UK home now costs 7.3 times average earnings, the lowest ratio since 2015.Elmbridge in Surrey is Britain’s least affordable local area at 17.4 times earnings.Inverclyde and Aberdeen are among the most affordable, at 3.5 times earnings.Buying a home has become more affordable relative to earnings than at any point in 11 years, but the improvement is far from evenly spread across Britain.According to new Lloyds analysis, the average UK…
Major building society responds to Lloyds affordability data
New analysis from Lloyds shows the gap between house prices and earnings has fallen to its lowest level in 11 years, with the average UK home now costing 7.3 times average earnings. While the figures point to improving affordability on paper, Charlotte Harrison, CEO of Homes at Skipton Building Society, insists there is more to do […]
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