The number of years of average earnings you need to buy an average property
Source: Data from Nationwide. Graphics from DataCurator
Property ownership has not only become more expensive, it has become further and further out of reach. After all, we expect prices to rise - but property prices are getting so unconnected to earnings - that an opportunity to get on the property ladder is becoming less and less realistic for more and more people.
The above chart shows how many times average income you would need to buy an average property. It's called the Affordabillity Index - although perhaps more accurately it should be called the Inaffordability Index.
Whatever you call it, you have to be almost twice as well-off in terms of income to buy a property today than you did in 1983. According to data from The Nationwide published in December 2021:
Annual house price growth increased to 10.4%, from 10.0% in November
2021 was the strongest calendar year for house price growth since 2006
Price of a typical UK home hit record high of £254,822, up nearly £24,000 over the year
Wales was the strongest performing region in 2021, London the weakest in terms off price growth.
A full breakdown of affordability by region
can be found in the attached spreadsheet.
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