The housing gap is rising in the UK. The cost of a house in comparison to salary has gone up 1.4x each year since 1970 and over 3x since 1997, leading to an average person needing to pay almost 8x their annual salary just to afford the average home. Will this much growth there is no doubt that it will reach the 10x burden across the UK. While they don’t see this happening for some time, it is still a troubling thought.
- In England, property prices are rising at a rate far faster than salaries, potentially pricing many young workers out of the housing market in the future.
- In coming years, young workers may be forced to spend about 10 times their annual salary to get into the housing market in England.
- Housing prices in England are expected to triple by 2030, making it nearly impossible for young people to even afford a down payment despite financial help from their parents.
“The home affordability ratio is currently one of the highest it has ever been, with buyers in England requiring 7.9 times the average salary (£27,195) to buy a property. Houses are slightly more affordable than they were in 2007, where buyers needed to stump up 8.2 times more than what they earned in a year”
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