"Regional variations highlight that while some areas remain relatively accessible, many buyers will continue to find the market increasingly difficult to enter or move within"
- Adam Day - eXp UK
House prices in Great Britain have risen at more than five times the rate of average earnings over the past year, according to new research from eXp UK, underlining growing affordability concerns for homebuyers.
The analysis, based on government data, compared the annual change in house prices with wage growth across each UK region. While regional differences remain significant, property values have outpaced earnings growth in every part of the country.
The average house price in Great Britain now stands at £271,403, marking a £10,087 increase in the past 12 months. Over the same period, the average annual salary rose by just £1,921—from £38,413 to £40,334. As a result, property prices are increasing at 5.3 times the rate of earnings nationwide.
The largest gap between house price and wage growth was recorded in the East of England and the East Midlands, where house prices rose 6.7 times faster than salaries. Other regions with a pronounced disparity included Scotland (6.4 times), Wales (6.3 times), Yorkshire and the Humber (5.8 times), and the North East (5.8 times).
London and the West Midlands both saw house prices climb 4.7 times faster than income growth. While these regions benefit from relatively higher salaries, the rate at which property values have increased still represents a significant affordability issue.
The North West (3.8 times), South East (3.7 times), and South West (3.3 times) posted smaller, though still notable, gaps between property prices and wages.
“This research underscores the continued challenge for homebuyers as property values continue to rise significantly faster than incomes,” said Adam Day, head of eXp UK and Europe. “With house prices growing more than five times quicker than earnings nationwide, buyers face increased pressure and reduced affordability.”
“Regional variations highlight that while some areas remain relatively accessible, many buyers will continue to find the market increasingly difficult to enter or move within,” Day added.
