House Price Rises massively outstrip Earnings

Online Mortgage Advisor has conducted a research by looking at how much property prices have outgrown local wages during the past 10 years.

It has calculated the ratio change between the median house price and median annual salary in 2013 vs December 2022 in 330 local authorities across Britain.

A higher ratio indicates a larger growth in the gap between property prices and local earnings, meaning workers were priced out of the area at the fastest rate.

The study revealed that Epsom and Ewell was the local authority where workers were priced out the most: 10 years ago, full-time workers in this area could typically expect to spend 11.55 times their annual salary on buying a home. This has risen over the years and by December 2022, workers could expect to fork out 20.54 times their salary, an increase in the ratio of 8.99.

London local authorities as well as the East and the South East of England dominate the list of the locations that have become more unaffordable compared to average salaries in the past 10 years. Kensington and Chelsea, Watford and Hillingdon come as second, third and fourth in the list as the worst affected locations.

House prices in Angus, Scotland, have seen the smallest change in the affordability radio across the country. Only in 20 local authorities buying property has become more affordable. Ten of them are located in Scotland and the rest in the North West and East of England.

		Median Salary (GBP)		Median House Price (GBP)		Property Price to Salary Ratio		Ratio Difference 2013 to 2022
Local authority		2013	2022	2013	2022	2013	2022
Epsom and Ewell	South East England	28,305	28,000	327,000	575,000	11.55	20.54	8.99
Kensington and Chelsea	London	31,307	34,468	979,000	1,390,000	31.27	38.12	6.85
Watford	East England	29,391	28,651	235,000	420,000	8.00	14.66	6.66
Hillingdon	London	35,738	34,271	269,950	485,000	7.55	14.15	6.60
Elmbridge	South East England	32,295	34,927	430,000	685,000	13.31	19.61	6.30
Barking and Dagenham	London	32,248	31,675	180,995	375,000	5.61	11.84	6.23
Barnet	London	29,953	34,291	345,000	612,500	11.75	17.86	6.11
Redbridge	London	31,215	34,277	274,998	496,000	8.81	14.47	5.66
Reigate and Banstead	South East England	30,903	32,276	290,500	485,000	9.40	14.98	5.58
Havering	London	29,858	33,480	232,500	445,000	7.79	13.29	5.50
Richmond upon Thames	London	31,997	37,041	475,000	752,000	14.85	20.30	5.45
Merton	London	28,610	33,702	320,500	560,000	11.20	16.62	5.42
Basildon	East England	29,017	30,647	192,000	360,000	6.62	11.75	5.13
Dacorum	East England	27,754	30,674	250,000	432,000	9.01	14.08	5.07
Ealing	London	29,733	34,742	326,950	555,000	11.00	15.97	4.97
Sevenoaks	South East England	28,876	30,849	285,000	480,000	10.60	15.56	4.96
Wokingham	South East England	34,899	37,192	285,000	486,000	8.17	13.07	4.90
Brentwood	East England	30,434	34,804	275,000	485,000	9.04	13.94	4.90
Tunbridge Wells	South East England	28,608	31,675	250,000	435,500	8.91	13.75	4.84
Waverley	South East England	26,014	30,797	340,000	550,000	13.07	17.86	4.79
Windsor and Maidenhead	South East England	33,749	37,253	338,000	545,000	10.02	14.63	4.61
St Albans	East England	25,861	33,895	360,000	626,000	13.92	18.47	4.55
Lambeth	London	35,397	38,168	350,000	550,000	9.89	14.41	4.52
Sutton	London	30,061	35,707	250,000	457,500	8.32	12.81	4.49
Lewisham	London	30,478	36,104	260,000	470,000	8.53	13.02	4.49
Adur	South East England	22,361	26,875	218,000	382,000	9.75	14.21	4.46
Southend-on-Sea	East England	24,821	28,337	185,000	335,000	7.45	11.82	4.37
Hastings	South East England	22,103	26,012	155,000	295,000	7.01	11.34	4.33
Kingston upon Thames	London	29,450	36,150	335,000	566,000	11.38	15.66	4.28
Tonbridge and Malling	South East England	26,769	30,659	249,950	417,500	9.34	13.62	4.28