Property prices have soared to nearly nine time the average household disposable income in Britain, according to official figures.
Affordability ratios in England are at their worst since records began in 1999, the Office for National Statistics revealed today.
In London, an average-priced home will cost prospective buyers from low-income households an eyewatering 40 years’ worth of wages.
With prices expected to continue rising, James Andrews, personal finance expert at Money.co.uk said that the country’s affordability crisis “looks set to remain a political headache”, after costs soared in the wake of Rishi Sunak’s pandemic-induced stamp duty holiday, which left buyers and sellers rushing to seal the deal on homes to avoid unwanted levies.
“Young couples now have to borrow bigger sums for longer if they are to have any chance of getting a foot on the ladder,” he added. “The good news for existing owners is that the recent surge in house prices means people coming off fixed deals may actually find themselves in more advantageous loan-to-value brackets, potentially offsetting rises in interest rates.”