UK house prices are unattainable... no, not just London, most the country, latest statistics suggest

Oliver Gill
Follow Oliver
Hasbro Announces New Monopoly Playing Figure
You'll need to collect a lot of your salary as a deposit to be able to afford a house, latest research suggests (Source: Getty)

London house prices, for anything wanting to get onto the property ladder in the capital it is something of a bind.

And now new research suggests buying a property isn't just a challenge for under-40's in London, it is nigh-on impossible across most of the country unless you have a chunky deposit to hand.

In 87 per cent of cases across England, Scotland and Wales, house prices were more than five times average salaries.

Read more: London house prices set to keep falling in the near-term

To show what a dilemma this is for those eager to buy a home you only have to go the government's website, the Money Advice Service. Its mortgage calculator estimates the maximum Brits will be lent is just 4.2 times their gross salary.

This means in almost all of the England, Wales and Scotland, if you haven't got just under 10 months of your gross salary saved up in the bank you'll struggle to crack into property.

Returning to the analysis of local authorities, by consumer champions Which, looked at 355 local authorities and compared house prices with the average earnings of 22 to 39-year-olds.

Annual income multiple Number of local authorities
3-5 times 46
5-8 times 149
8-10 times 98
10-15 times 55
15-18 times 7

Only in 46 of the local authorities (sorry London, you didn't feature) were house prices between 3-5 times salaries.

Top five most affordable places to buy

Local authority Mean earnings of 22-39 year-olds Average first-time buyer price Income multiple
Burnley £21,483 £73,121 3.40
Copeland £30,067 £102,699 3.42
Inverclyde £22,975 £79,385 3.46
South Lanarkshire £26,946 £93,284 3.46
North Lanarkshire £23,744 £82,221 3.46

Excluding London from those areas most out of reach – the most out of reach local authority was Westminster where the average house price of £984,889 was 18 times that of average salaries – many of London's popular commuter cities and towns were also out of reach.

Read more: Millennials just wanna have fun: More are saving for a holiday than a house

Top five least affordable places to buy

Local authority Mean earnings of 22-39 year-olds Average first-time buyer price Income multiple
Oxford £26,939 £363,548 13.50
Hertsmere £28,343 £371,235 13.10
Cambridge £29,126 £365,272 12.54
Chichester £22,988 £285,704 12.43
Brighton and Hove £25,151 £310,214 12.33

The bottom line...

As this wasn't depressing enough for Londoners, separate analysis of official statistics shows just how hard it is to get onto the property ladder in the capital.

The average house price in London is £580,330, according to Rightmove and the Office for National Statistics (ONS) figures show the average London salary is £34,473.

Read more: This one graph explains the horrors of London house prices

So, assuming you can convince a bank to lend you the maximum the government's Money Advice Service will allow, 4.2 times, the average Londoner will need to save a mere £435,543 as a deposit to buy a house.

A more likely scenario, where couples buy together, would mean that two people on London's average salary would still need to save £290,757 between as a deposit them to snap up a property.

Related articles