London’s housing crisis continues to worsen as the latest research suggest that the majority of housing in the least affordable areas of London is on average eight times the cost of the average UK wage, writes property developer Richard Carr.
According to eMoov, London as a whole has average house prices which succeed the average wage by 14 times!
Unsurprisingly, both London and Kensington top the list with the average property price at £1.2m. The price of property in the borough is a ridiculous 46 times the average wage of £26,624 and the nation’s biggest gap in wage to property ratio by a long way.
Away from the capital, the ratio isn’t as large. Moving north to Scotland the average price is £143,711 which is five times the average wage, whilst Wales is six times at £144,828. Like London in the UK, the City of Edinburgh in Scotland is second for unaffordability, but is still just 210th in the UK as a whole.
Copeland in Cumbria worked out as the most economically affordable area in the United Kingdom with its property to wage ratio at just three times the average wage. Blaenau Gwent was just four times as was Burnley in Lancashire.
Speaking to propertywire.com, Russel Quirk, chief executive officer of eMoov, said:
“Property values in England are significantly higher than the rest of the United Kingdom, which is reflected in the wages offered. However, the wages are not always consistent with property prices and have failed to increase at the same pace.
“It highlights the unaffordability of the market in England when you consider the difference in Wales, where the highest annual average wage is under £21,000 in Cardiff yet the city’s property value is merely third in the country behind regions with lower averages in annual incomes. Additionally, the average wage in Kensington and Chelsea would take almost a lifetime working to be able to afford a home, which is unrealistic for most let alone the average buyer.”
“It is important to consider the wage you can earn when buying property to understand the longevity of the investment, as a lower property price doesn’t always mean a better quality of living as the wage will also reflect the local market and economy.”
Poole-based property developer Richard Carr believes the research has highlighted some worrying statistics which will likely get worse over the coming years.