Average UK house price stands at £216,750 while the average wage comes in at £27,440
House price growth may be showing signs of slowing down yet wages aren’t exactly keeping pace. As a result, the average price of a home in the UK is now eight times the average wage, so it’s little wonder so many people find it difficult to get that first foothold on the housing ladder.
The figures, from eMoov.co.uk, show that the average UK house price stands at £216,750, while the average wage comes in at £27,440. Unsurprisingly, this disparity is most keenly felt in London, where average house prices (£484,716) are 14 times the average wage (£34,320). Within that, the borough of Kensington and Chelsea has by far the highest disparity with the average house price at £1,212,375, a whopping 46 times the average wage (£26,624).
The London effect has driven the disparity in England, resulting in the average house price (£232,885) being nine times higher than average wages (£26,884). Meanwhile, Scotland has the lowest price-to-wage ratio with house prices (£143,711) being around five times wages (£27,404), while the average price of a property in Wales (144,828) is six times higher than the typical wage (£24,617).
“Property values in England are significantly higher than the rest of the UK,” said Russell Quirk of eMoov.co.uk. “However, wages are not always consistent with property prices and have failed to increase at the same pace, [which] highlights the unaffordability of the market.”