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Housing affordability ratio in England lowest since records began in 1999

  • 28/07/2022
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Housing affordability ratio in England lowest since records began in 1999
The average home in England costs around 8.7 times the average annual disposable household income, the highest income to house price ratio since 1999.

According to the Office for National Statistics (ONS), the figure is based off £275,000 as the median house price and £31,800 for the median income.

The ONS said this affordability ratio for England is worse than at any point since the series began in 1999, when housing affordability ratio stood at 4.4.

The report continued that in Wales the affordability ratio was six and in Scotland it was 5.5.

It noted that these were below the peaks of 2007 for Wales and 2008 for Scotland.

It explained that following the financial crisis, housing affordability had worsened in England, Scotland and Wales but since 2014 England’s ratios had increased and had led to a bigger affordability gap between England and the other countries.

The report said that in all three countries, the affordability of low income households varied more over time than those of average or high income households.

It said an average price home in the North East cost around 12 years of income for a low income household, compared to 40 years for a low income household in London.

The South West, South East, East of England and London had generally worse affordability than average for England.

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