Gender property gap shrinking

Gender property gap shrinking

New research and data from online estate agent, eMoov.co.uk, has highlighted the gap in mortgage affordability between men and women due to the gap in their average salary.

According to the findings, the deficit between the average salary for men and women and the ever-increasing cost of home ownership are two widely debated topics. But what does it look like when you combine the two?

eMoov looked at the latest ONS data for the average wage over a 10-year period (2006-2016) for both men and women and then looked at their mortgage affordability at 4.5 times that wage. eMoov then highlighted the gap in purchase power between the two showing mortgage availability as a percentage of the average house price at the time.

The Last 10 Years

Over the last 10 years, the average mortgage affordability of male home buyers has been 72% of the average house price, 15% more than female home buyers (57%). This deficit remained around this level until 2013. It peaked at 17% in 2009 with the male salary allowing a 79% mortgage availability on the average house price, to just 62% for women, with the higher threshold of affordability largely due to the market crash.

Since the gap has begun to close and today sits at 12%, but with house price again finding their way back to their pre-crash peaks, mortgage affordability for the average salary has fallen to 65% for men and 53% for women.

Despite the gap, the high cost of UK home ownership means that since 2006 both average wages have lagged behind house prices where mortgage affordability is concerned.


By Property Type

The 2009 slump in house prices saw the highest mortgage availability as a proportion of the average house price, with men tipping 52% for a detached property, 83% for a semi-detached home, 97% for a terraced property and 91% for the average flat. In contrast, female mortgage affordability only hit 41% for a detached home, 65% for a semi, 76% for a terraced house and 71% for a flat.

Today that has again fallen, with men sitting at 43% of the average value of a detached house, 69% of a semi-detached, 80% of a terraced house and 72% of a flat. For women, this falls to 35% of a detached house, 56% of a semi-detached property, 65% of a terraced home and 58% of a flat.

Russell Quirk, founder and CEO of eMoov.co.uk, commented: “It’s a welcome sight that the gap in salary between men and women, and in turn mortgage affordability, has started to close over the last few years, but a gap remains none the less. Homeownership provides enough hurdles for the current generation of first and second-time buyers as it is, without gender having to play a role.

The only saving grace is that many are in the position to buy with their partner and so the combined mortgage affordability of both is enough to see them onto that first rung of the ladder.

While the increasing growth in property values due to a severe lack of supply is an issue the second side to it is the lack of growth in the average wage. If this was addressed, it would at least go some way in bridging the gap for those struggling to buy at present.”

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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