In DevDosh Ltd opinion, getting onto the UK property ladder has never been a taller order with house prices at all-time highs, cost of living increasing, record low-interest rates affecting savings and wages not keeping up with inflation.
UK residential property prices are now eight times higher than the average wage, with lending harder to come by unless you have a sizable deposit it will all but impossible for the average first-time buyer to tackle the first rung on the property ladder.
A recent survey by online estate agents eMoov showed that as you would expect the house prices are somewhat higher at 14 times the average wage.
Outside London, the most disproportionate region is St Albans in Hertfordshire where the average wage is £18,928 while the average property price is £522,716 – 28 times higher.
As DevDosh Ltd found that Scotland has the lowest ratio of the average house price just five times higher than the average wage, but there is always the exception to the rule and in Scotland that is East Renfrewshire where properties are on average 13 times more than the average wage.
Russell Quirk, founder, and CEO of eMoov.co.uk, said: “Property values in England are significantly higher than the rest of the United Kingdom, which is reflected in the wages offered. However, the wages are not always consistent with property prices and have failed to increase at the same pace.
“It highlights the unaffordability of the market in England when you consider the difference in Wales, where the highest annual average wage is under £21,000 in Cardiff yet the city’s property value is merely third in the country in regions with lower averages in annual incomes. Additionally, the average wage in Kensington and Chelsea would take almost a lifetime working to be able to afford a home, which is unrealistic for most let alone the average buyer.”
“It is important to consider the wage you can earn when buying property to understand the longevity of the investment. A lower property price doesn’t always mean a better quality of living as the wage will also reflect the local market and economy.”
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