Property

Average room price is double average UK salary: ONS

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11th October 2017

The latest ONS statistics for house price per square meter and per room has revealed that the average room price the UK is £57,065 - double the average UK annual salary.

Between 2004 and 2016 the price per habitable room in England and Wales has risen by around 45%.

The highest house price per square metre (which includes both houses and flats) is in London with an average cost of over £6,500 for each square metre.

Between 2004 and 2016, price per area in London nearly doubled (98%) with the East of England and the South East both increasing by around 55% over the period.

The borough of Kensington and Chelsea is the most expensive area to buy a house, with an average price of £19,400 per metre squared, around eight times the England and Wales average.

At the lower end you would pay £777 per metre squared in Blaenau Gwent, a third of the England and Wales average and less than 5% of the prices in Kensington and Chelsea.

Andy Sommerville, Director at Search Acumen, commented: “Today’s figures crudely highlight the extent of the affordability crisis that is hindering the dream of home ownership for millions. To put today’s figures into context, the average price per room in the UK is £57,065, double the average UK annual salary.

“While these figures highlight a widening North/South divide, the issue of making property more affordable remains a nationwide one.

“Our research shows that England will reach a housing shortfall of a million homes by 2020. With Theresa May’s pledge for affordable housing only expected to fund 25,000 additional homes, it is clear government’s current appetite for intervention will not bring the dream of homeownership back to reality.

“The industry must act now to address this shortfall to stop the cost of homes for everyday people reaching premium and prime levels.”

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