13 Sep 2017
Pay outpaces house prices according to Yorkshire Building Society
A study by Yorkshire Building Society has shown that half of UK homes are now more affordable than they were before the financial crisis. With cities such as Birmingham, Glasgow and Leeds having the largest gap between house prices and earnings.
The building society found that the affordability crisis in London was pushing people to look at other areas to live such as Lewes and Exeter, as these places have become more and more affordable in the past 10 years. The number of people leaving London is at a five-year high, with around 93,000 migrating out in June 2016, which is 80% higher than five years earlier.
Yorkshire Building Society’s chief economist, Andrew McPhillips, said:
“Across London and large swaths of southern England, which were already some of the most unaffordable parts of the country, it has become increasingly difficult for first-time buyers and those wanting to move up the housing ladder to be able to buy their first or next home.”
He continued to say that:
“The north of England, Wales and Scotland present a different picture entirely, with many places, such as Edinburgh, Peterborough and Birmingham, becoming more affordable than they were before the credit crunch.”
A separate set of figures, from the property consultancy Savills, show that average house prices in London rose from £286,000 in June 2007 to £482,000 in June 2017. During the same period, they increased by £8,000 in Yorkshire and fell by £8,000 in the north-east.