ONS: Workers spend 7.8 times income on buying a home
Last year in England, full-time employees spent on average 7.8 times their workplace-based annual earnings on purchasing a home, according to the Office for National Statistics.
However, this is an improvement on 2018 where the average full-time worker in England spent eight times their workplace-based annual earnings on purchasing a property.
In Wales in 2019, on average full-time employees spent 5.8 times their annual income on buying a property.
This figure is in line with the average recorded in 2018.
Despite this, the data outlines that earnings grew faster than house prices in 55% of local authority districts in 2019.
Looking at property type, new dwellings remained less affordable than existing dwellings in both England and Wales.
For the first time since 2015, the gap between the most and least affordable local authorities decreased in 2019.
Kevin Roberts, director at Legal & General Mortgage Club, said: “Affordability in the housing market is clearly improving.
“Over the past year, buyers have taken advantage of the low rate environment and many have sought out the support of advisers to find great mortgage deals.
“Younger buyers and even those further up the ladder have also continued to benefit from schemes like Help to Buy and shared ownership.
“We are now clearly in unprecedented times though and industries across the UK, including the mortgage market, will be facing the challenge of adapting to a new normal.
“However, homeownership is an ambition shared by people across the country.
“Couples, families and individuals will all still want to step onto and up the ladder and homeowners will need to remortgage too.
“Many will continue to seek out the support of a mortgage adviser for guidance on repayment holidays and finding new deals should they become concerned about their financial wellbeing for example, seeking certainty that they are making the right decisions in these challenging times.”