The average house price across the UK is now six times that of the average wage, new research has revealed. According to eMoov, a house buyer needs 6.05 times their average wage to purchase a property. This means there is a gap of £6,111 between the current average wage and the wage required for a […]
The average house price across the UK is now six times that of the average wage, new research has revealed.
According to eMoov, a house buyer needs 6.05 times their average wage to purchase a property.
This means there is a gap of £6,111 between the current average wage and the wage required for a general mortgage approval of 4.5 times the salary.
eMoov compared the latest Land Registry house price data with the recently updated Office for National Statistics wage data.
With the price of the London property market continuing to spiral out of control, it is by far the worst region of the UK with the average house price 12.05 times the average wage.
Hackney is the worst of the bunch with an average house price of £575,511, 17.03 times the average wage of £33,800. Brent (x16.37) and Haringey (x16.21) are also home to an average property price over 16 times that of the average wage for the area.
Waltham Forest (x15.69), Ealing (x14.77), Harrow (x14.73) and Barnet (x14.18) are the amongst the other worst offenders and Purbeck is the only non-London entry in the top 10 at 14.12 times the average wage.
Hammersmith and Fulham (x14.06) and Newham (x13.81) complete the top 10 worst.
Outside of the capital, the gap closes slightly, although the top 10 are all home to a deficit of more than 12 times the average wage to house price.
After Purbeck the worst area is Oxford with the average house price of £408,448, 13.18 times the average salary of £31,000. South Bucks (x13.08), Hertsmere (x12.95), Three Rivers (x12.81), South Hames (x12.65), Broxbourne (x12.53), Christchurch (x12.47), Epsom and Ewell (x12.44) and Brighton and Hove (x12.43) complete the top 10 worst outside of London.
The 10 best areas include Burnley, Easy Ayrshire and Inverclyde.
Founder and CEO of eMoov.co.uk, Russell Quirk, said: “When London is thrown into the spotlight in terms of the unaffordability of its property market, many are quick to highlight that the wages on offer are higher in the capital. However, this research shows that despite this, the gap between what hopeful London buyers are earning and what they are having to pay for a property is still way out of kilter and climbing.
“Not only this, but the reality gap between the average wage and wage required for mortgage approval is a staggering. Of course, many of us buy with a partner or friend in order to get on the ladder, but even when sharing this burden there is still a considerable financial mountain to climb.
“It also shows that elsewhere around the nation there is almost a direct correlation between what a property goes for and the earnings on offer. But regardless of where you live and what you earn, there has been a serious unbalance between the escalating price of property and the stagnating wages available to UK buyers. This really needs to be addressed to help current and future UK buyers get a foot on the ladder and continue climbing it.”
The 10 worst places to buy a home in London
| Top 10 worst (All UK) | ||||
| Rank | Location | Average Wage | Average House Price | House Price/Wage |
| #1 | Hackney | £33,800 | £575,511 | 17.03 |
| #2 | Brent | £28,800 | £471,368 | 16.37 |
| #3 | Haringey | £34,700 | £562,564 | 16.21 |
| #4 | Waltham Forest | £27,200 | £426,808 | 15.69 |
| #5 | Ealing | £32,700 | £482,969 | 14.77 |
| #6 | Harrow | £32,600 | £480,348 | 14.73 |
| #7 | Barnet | £38,200 | £541,643 | 14.18 |
| #8 | Purbeck | £23,800 | £335,950 | 14.12 |
| #9 | Ham & Fulham | £54,900 | £771,882 | 14.06 |
| #10 | Newham | £24,600 | £339,746 | 13.81 |
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