House prices soar to a record 7.1x average earnings

A typical home in the UK now costs more than seven times average earnings, new data has revealed. Research from Halifax found that, since the start of the pandemic, property prices have risen 16.8% from £239,281 while average incomes have only increased by 2.7% from £38,374. In the first quarter of 2022, the cost of an average home in the UK was £279,431, while annual average earnings of a full-time worker were estimated to be £39,402. London was found to be the most expensive place to buy a home, with an average property price of £534,977 and house price-to-earnings ratio of 9.7. Westminster and the City of London, however, witnessed the sharpest improvement in the house price to earnings ratio since the start of the pandemic, with a drop from 16.8 in early 2020 to 14.5 in 2022.

Daily Mail (25/06/2022)