Homes cost more than seven times income

March 17, 2017 10:06 am Published by

Homes cost more than seven times income

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Working people typically face house prices of more than seven times their annual earnings as affordability is increasingly stretched.

The typical property cost 7.6 times average annual earnings of employees in England and Wales, the Office for National Statistics (ONS) said.

The aftermath of the financial crisis saw affordability levels plateau.

But now buyers face paying a record multiple of earnings as the affordability gap widens.

In 2007, the typical buyer faced paying 7.2 times their earnings on a property, but this was surpassed in 2015 (7.4 times) and again in 2016 (7.6 times).

The official figures will make gloomy reading for potential first-time buyers whose wages have stagnated and who now see property ownership become comparatively more expensive.

However, borrowing costs are at historic lows with banks and building societies cutting interest rates on mortgages to attract customers.

A recent report by Shelter suggested that nearly eight out of 10 families across England are unable to afford newly built homes in their local area.

‘Quickest sales’

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Northampton is the fastest-moving property market in the UK, according to analysis of listings on a property portal.

Zoopla calculated the length of time that properties were listed on its website before being marked as under offer.

Typically, among towns and cities across the country, properties in Northampton were listed for the shortest amount of time, 27 days.

Milton Keynes (29 days) and Croydon (30 days) were next on the list.

Regionally, properties on the site came under offer fastest in the South East of England and the East of England (42 days) compared with the longest – Wales – which took 66 days.


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