During the last year, house prices have increased by 5.8%, according to data released by the Halifax. However, there is an alarming difference in price increases and affordability across the UK, with London remaining the most unattainable.
The Office for National Statistics has revealed data from the last few years, which demonstrates the inequality of housing prices and affordability in the country. London is the most unaffordable city, with property values increasing 551% since 1995, in comparison to 235% in Wales and 208% in England’s north east. Since 2014-15, properties in London have increased in value by 9.6% in London, while property in the north east of England has increased by 5.5%.
The most affordable area to buy a home last year, was Burnley in Lancashire. Affordability is calculated by dividing the average price of a property by the annual salary, giving the affordability ratio. As annual salaries had increased and the average house price had fallen last year, statistically, Burnley had the most affordable homes.
The least affordable in the country was Westminster, where an average property cost 23 times more than the average salary. Although affordability across England and Wales has remained fairly level since 2009, the house prices in Westminster have continued to soar, although salaries have remained constant. Rents have also been affected, with rent in the City of London, Westminster and Kensington and Chelsea over £2,000 per month.
CeMAP training for mortgage advisers helps them to support buyers to look for a suitable property and an affordable mortgage.