The average house price in London is 14 times the average wage, says eMoov
According to the eMoov‘s latest research, the majority of the least affordable areas are found in London where the average house price climbs to 14 times the average wage of £34,320.
The borough of Kensington and Chelsea tops the list with the average property price at £1,212,375, despite suffering London’s biggest property value decrease in the past year at 6%. The price of property in the borough is now 46 times the average wage £26,624 and the nation’s biggest gap in wage to property ratio by a long shot.
The City of Westminster is number two on the list for most expensive average property prices to wage, where the average property is valued at £1,028,617, up +11% annually. With the average wage just £33,020, house prices are therefore 31 times higher than the earnings on offer.
Staying within the capital, Richmond Upon Thames placed fourth in the list for most expensive average property price to wage in the United Kingdom. It cost 26 times the average wage (£25,636) to get on the ladder in the borough (£659,636), with the area jumping +9% in the past 12 months.
In Wales the lower cost of property means that the gap is just six times the average wage on offer. Monmouthshire is home to the highest average property price to wage ratio in Wales, costing £221,345 but is only ranked 153rd overall in the United Kingdom, with the average house price 12 times the wage.
With property prices also lower in Scotland the resulting gap across the country is just five times the wage.
The most expensive Scottish region is East Renfrewshire, despite placing 113th in the whole of the UK and the average wage must be multiplied 13 times, to be able to afford the average house price in the area.
The City of Edinburgh placed second in a three-way tie (behind East Dunbartonshire and East Lothian) for unaffordability in Scotland, but is still ranked just 210th throughout the entirety of the United Kingdom. It would take ten times the average wage to be able to afford a property in the Scottish capital.
Russell Quirk Founder & CEO, eMoov.co.uk :
“London is of course one of, if not the, most unaffordable city to live in where the price of property is concerned.However, on top of this wages have failed to keep pace with the rapidly inflating cost of getting on the ladder for some time now, making the prospect of living and working in London an unsavoury one for many.This research shows the monumental task facing would be Londoners and highlights that something must be done at both ends of the spectrum to help them.”