House prices rocket 5.3 times faster than earnings

Great Britain’s property market has become increasingly unattainable for aspiring homeowners, as research reveals that house prices have surged at 5.3 times the pace of wage rises over the past year.

According to eXp UK, which examined government data, the average home now costs £271,403, a £10,087 jump from last year.

Meanwhile, the typical annual salary has grown by just £1,921, reaching £40,334.

This stark contrast, it says, highlights a growing affordability crisis, with property values climbing far beyond what most workers can afford.

Prices rise quicker than income

The head of eXp UK, Adam Day, said: “This 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.”

He added: “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.”

Affordability gap widens

The research shows that the affordability gap is most pronounced in the East of England and East Midlands, where house prices have risen 6.7 times faster than incomes.

Scotland follows closely with a 6.4-fold difference, while Wales and Yorkshire and the Humber see gaps of 6.3 and 5.8 times, respectively.

The North East also reports a 5.8-times disparity.

Even in London, where salaries are typically higher, property prices have outpaced earnings growth by 4.7 times, matching the West Midlands.

The North West, South East and South West show slightly smaller but still significant gaps, with ratios of 3.8, 3.7, and 3.3 times, respectively.