Houses Now Cost Five Times Income
The income first-time buyers need to get on the housing ladder has reached unprecedented levelsA new report from Hometrack shows the ratio of house price to income has nearly doubled in the past decade, so that an average house in Britain now costs more than five times the average first-time buyer's income.
The average cost of a home in England and Wales is £176,300, according to Hometrack's figures.
This ratio of house price to income is far higher than at the peak of the last price boom in 1990.
Despite a long period of low interest rates, mortgage costs as a percentage of income - seen by some as a fairer measure of affordability - have also virtually doubled over the same period to more than 32%.
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