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Michael Brown

Content Writer
Published: 25/06/2022

In contrast, the average income increased by 2.7%.

The average house price in the UK has increased by 16.8% since the start of the pandemic, according to Halifax. It now means that housing affordability is at the lowest level on the bank’s records.  

“Soaring property prices and slower wage growth have combined to stretch traditional measures of housing affordability,” said Andrew Asaam, Mortgages Director at Halifax.

In comparison, the average wage growth in the UK since the pandemic began is set at 2.7%. Today, the cost of a typical UK home is over seven times more expensive than the average annual earnings.

However, this gap should narrow over time according to Assam.

“With interest rates on the rise as a means of combatting inflation, it’s unlikely that house prices will continue to grow at the pace we’ve seen recently,” he explained.

How is the first-time buyer market impacted?

The average first-time buyer is now 32 years old, three years older than what was recorded a decade ago.

Despite this increase, there were nearly 410,000 first time buyers on the market last year, an increase of 35% when compared to the previous year.

This, in part, can be attributed to many real-life situations where there were joint applications, or applicants might have benefited from other sources of funds, said Halifax.

Average house prices

This week, the average house price in the UK crossed the £280,000 mark according to the Office for National Statistics.

Halifax have made a similar evaluation, pricing the typical UK home at £279,431 for the first quarter of the year.

It found the North East of England to be the most affordable region to buy a home, with an average house price over £162,500. By comparison, the average earnings in the region were nearly £35,000 per annum. 

It means housing in the region is more affordable than it was in 2007, a year prior to the financial crash.


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