UK houses prices are currently sitting at nearly nine times the average earnings, making it the hardest time to look at climbing the housing ladder in decades, House Buyer Bureau has found.

The quick house sale company looked at how the value of a home and average earnings have changed every decade since the 1970s and what it means for homebuyers when it comes to the income to house price ratio.

The average house price through the 1970s sat at just £9,277, the equivalent of £68,493 in 2023, after adjusting for inflation. The average wage in this decade was £2,265 per year, or £16,723 after adjusting for inflation.

However, the average house price in this decade has hit £286,489, 318% higher than that of the 1970s. However, average earnings have increased by just 94% in this time, to £32,432.

As a result, the average homebuyer requires nearly nine times their income to cover the cost of a home, with the income to house price ratio more than doubling since the 1970’s.

Managing director of House Buyer Bureau, Chris Hodgkinson, commented: “You have to feel for today’s homebuyers who have seen house prices explode over the last decade or two, in particular, while the earnings on offer to them have failed to keep pace.

“As a result, they require over double the level of income to cover the cost of a home compared to their previous counterparts looking to purchase back in the 70s.

“As if this wasn’t bad enough, they’ve been further squeezed by high levels of inflation and the cost-of-living crisis in recent months and, as a result, are now paying through the teeth when looking to secure a mortgage due to interest rates hitting 5%.”

Share Story: