Average home ‘costs 10 times annual income of full-time worker’

Published: Wednesday 4th November 2015 by The News Editor

Comments (0)

The typical UK home costs more than 10 times the annual income of full-time workers, analysis of official figures has found.

And the situation is only slightly better on first-time buyer homes, which cost almost eight times the average income.

A housing charity has claimed the findings show home ownership is now a “distant dream” for millions across the country.

The average property in the UK is currently valued at £284,000 by the Office for National Statistics, while first-time buyers typically paid £215,000 to climb on to the property ladder.

By contrast, the median gross annual earnings for full-time employees is £27,200, according to latest official figures.

In response to the findings, the Government insisted it has put a number of measures in place to help people buy, including building more starter homes.

A Department for Communities and Local Government spokesman said: “We want to ensure that anyone who aspires to own their own home can turn their dream into a reality.

“Government initiatives have helped more than 230,000 people to buy since 2010, and we are delivering 200,000 new starter homes, which will be available at a 20% discount to first-time buyers.

“We have got Britain building again, with the latest figures showing that new homes are up by 9% on this time last year.”

However, Shelter chief executive Campbell Robb claimed the starter homes initiative would only benefit the “well-off”, and called on the Government to invest more in affordable housing.

“When house prices are so completely out of step with the average person’s wages, it highlights in black and white that home ownership is nothing but a distant dream for millions across the country,” he said.

“Government schemes like Starter Homes will only help the well-off, whilst the rest of Generation Rent remain trapped in expensive and unstable private renting.

“If George Osborne is truly serious about turning the tide on this crisis, the upcoming spending review is his last chance to commit to investing in homes that people on ordinary incomes can actually afford to rent or buy.”

Below is a list of the latest official house prices by region. In brackets is how many times more than the average median income of £27,200 this price equates to:

:: London: £522,000 – (19.1 times average income)

:: SE England: £359,000 – (13.1)

:: Eastern England: £306,000 – (11.2)

:: SW England: £264,000 – (9.7)

:: West Midlands: £205,000 – (7.5)

:: East Midlands: £196,000 – (7.2)

:: Yorks/Humber: £186,000 – (6.8)

:: NW England: £184,000 – (6.7)

:: NE England: £160,000 – (5.9)

:: N Ireland: £151,000 – (5.5)

:: Scotland: £198,000 – (7.2)

:: Wales: £174,000 – (6.4)

Published: Wednesday 4th November 2015 by The News Editor

Comments (0)

Local business search