UK homes could soon cost 10 times the average salary
Property prices are rising - and salaries are struggling to keep up - Credit: Getty Images/iStockphoto
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 salary - Credit: Archant
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.”
