UK homes could soon cost 10 times the average salary

PUBLISHED: 09:17 23 February 2018 | UPDATED: 14:46 23 February 2018

Property prices are rising - and salaries are struggling to keep up

Property prices are rising - and salaries are struggling to keep up

BrianAJackson

The next generation of wannabe home-owners may need to find 10 times their annual salary in order to get on the property ladder.

HouseSimple.com’s forecast for home affordability based on the average house price vs the average salaryHouseSimple.com’s forecast for home affordability based on the average house price vs the average salary

According to research by HouseSimple.com, property prices grew 3.3 times faster than salaries between 1997 and 2017.

If this rate of growth continues, the average home in England could cost £1.5m by 2042 – almost 10 times the predicted average salary.

Buyers in England currently need 7.9 times the average salary of £27,195 to buy the average £223,000 home.

In London they need far more - the average home in the capital costs £419,000. By 2030, these figures could reach £600,000 and £1.3m respectively.

Alex Gosling from HouseSimple.com, said: “House prices won’t rise as sharply in 2018 as they have in previous years, but for many hopeful home buyers, the prospect of saving enough money for a deposit is still a distant dream.

“If house prices keep rising at the rate we’ve seen over the past few decades – and salaries can’t equate – it will become extremely difficult for future generations to acquire property even with the financial help of their parents.”

Related articles

More news stories

45 minutes ago

A by-election has been announced for a seat on London Colney Parish Council.

More details have emerged about a crash at the London Colney Roundabout on the A414 yesterday.

How much for the Poundworld premises on St Peter’s Street?

Yesterday, 21:00

Festival go-ers enjoyed a summer night of live music, friends, and food at a start-up St Albans event.

HERTS AD PROPERTY E-EDITION

Image
Read the Herts Ad Property e-edition E-edition

NEWSLETTER SIGN-UP

Get the latest St Albans and Harpenden property news and features straight to your inbox with our regular newsletter

I am also happy to receive other emails...
Fields marked with a * are mandatory
Email Marketing by e-shot

MOST READ

search


e.g. Oxford or NW3
Powered by Zoopla