The latest research from eXp UK has found that the average house price in Great Britain has increased at 5.3 times the rate of average earnings over the past year, highlighting a widening affordability gap for homebuyers.
eXp UK analysed Gov data on the current annual increase in both house prices and earnings across each region of the UK, with the data revealing significant regional disparities, despite house prices consistently outpacing earnings growth across each region of the country.
The research shows that the current average house price now stands at ยฃ271,403, an increase of ยฃ10,087 over the last year. In comparison, the average annual salary in Britainย has risen by just ยฃ1,921 over the same period, from ยฃ38,413 to ยฃ40,334.
This means that the average home in Great Britain has increased at 5.3 times the rate of average earnings over the past year.
The East of England and East Midlands recorded the greatest disparity, with house price growth outstripping earnings growth by 6.7 times.
Scotland (6.4 times), Wales (6.3 times), Yorkshire and the Humber (5.8 times), and the North East (5.8 times) also experienced pronounced differences between property price increases and salary rises.
London, despite its higher salary levels, saw house prices rise 4.7 times faster than earnings, alongside the West Midlands region.
The North West (3.8 times), South East (3.7 times), and South West (3.3 times) showed relatively lower, but still substantial, gaps.
Adam Day, Head of eXp UK and Europe, said,ย โThis research underscores the continued challenge for homebuyers as property values continue to rise significantly faster than incomes.
With house prices growing more than five times quicker than earnings nationwide, buyers face increased pressure and reduced affordability.
Regional variations highlight that while some areas remain relatively accessible, many buyers will continue to find the market increasingly difficult to enter or move within.โ
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