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Wages outstripped by house prices

Monday August 20th 2012

House prices in England have increased three times faster than the average salary over the last 10 years, according to a study by the National Housing Federation.

The data shows that between 2001 and 2011 the average house price increased by 94%, from £121,769 to £236,518, while average salaries only increased by 29%, from £16,557 to £21,330.

The housing federation, which represents housing associations, said that this discrepancy was making homes increasingly unaffordable.

A separate study by the lettings network LSL Property Services also found that "fierce competition" from frustrated would-be buyers has forced average rents up, leading to a high in July of £724 per month in England and Wales.

The Copeland area of the western Lake District in Cumbria has seen the largest increase in the salary to house price ratio, according to the National Housing Federation.

House prices in Copeland rose by 145% between 2001 and 2011 to an average of £129,862, while average wages only increased by 5% to £21,117.

This means that over the 10 years house prices increased from being 2.6 times higher than the average salary to 6.1 times higher.

Copyright Press Association 2012

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