House price affordability improves, but average first-time buyer still paying five times salary

Nationwide has reported a “modest improvement” in house price affordability over the past year, with wages outstripping house price growth, but challenges remain.

Front door of house with key in lock
(Image credit: Ian Nolan via Getty Images)

Wages outstripped house price growth last year resulting in a “modest improvement” in affordability for buyers, according to mortgage lender Nationwide.

Despite this, the average first-time buyer in the UK is still paying five times their annual salary when purchasing a property. This is significantly higher than the long-term average of 3.9 times earnings.

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RegionMost affordable local authorityHouse price to earnings ratio
ScotlandAberdeen2.5
North WestBurnley2.8
NorthHartlepool2.8
YorkshireNorth East Lincolnshire3.3
WalesBlaenau Gwent3.5
West MidlandsStoke-on-Trent3.7
East MidlandsChesterfield4.1
East AngliaGreat Yarmouth4.5
Outer MetropolitanSurrey Heath4.8
Outer South EastTendring5.0
South WestSwindon5.3
LondonEnfield6.2
Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.