Open Property Group recently looked into the continuous increase in house prices and how first-time buyers are continuously struggling to get on the ladder.
Over the last year, every region in England experienced at least a 3% increase in house prices, except London which was the only region to experience a decrease in inflation.
In comparison, annual salaries increased 5.6% in the last 12 months across England. This presents the question: ‘Are house prices finally becoming more affordable for new and existing homeowners?’
– Yorkshire and the Humber house prices increased, on average, by 6.5%
– North East house prices increased, on average, by 5.6%
– North West house prices increased, on average, by 5.4%
– East Midlands house prices increased, on average, by 4.2%
– West Midlands house prices increased, on average, by 4.1%
– South West house prices increased, on average, by 3.8%
– South East house prices increased, on average, by 3.4%
– East of England house prices increased, on average, by 2.9%
– East of England house prices decreased, on average, by 0.1%
Jason Harris-Cohen, Managing Director of Open Property Group, who will help England homeowners sell their property fast, said:
“The relationship between house prices and annual salaries in England has become increasingly strained, making homeownership less accessible for many. Historically, house prices were around three to four times the average salary, but this ratio has risen significantly over the past two decades. In many areas, particularly London and the South East, house prices now exceed ten times the average annual salary.
Stagnant wage growth compared to the rapid rise in property prices has widened the affordability gap. While salaries have increased modestly, house prices have surged due to high demand, low housing supply, and investment activity. This has led to a reliance on large mortgages, government schemes, and financial support from family members.
As a result, first-time buyers struggle to save for deposits, and many are forced to rent for longer. Without significant wage growth or a slowdown in house price inflation, affordability challenges are likely to persist in the housing market.