House prices up by nearly 17% since pandemic | moneyfacts.co.uk

Moneyfacts.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfacts.co.uk will always be from news@moneyfacts-news.co.uk. Be Scamsmart.

Advertisement

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.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy