New figures reveal that house prices in the UK are rising 5.3 times faster than average earnings, highlighting the growing affordability gap for homebuyers.
In the past year, the average UK house price increased by £10,087, bringing it to £271,403. By contrast, the average annual salary only grew by £1,921, reaching £40,334.
Regions Most Affected
Some areas have seen the gap widen even further:
- East of England & East Midlands – house prices rising 6.7 times faster than wages.
- Scotland – 6.4 times faster.
- Wales – 6.3 times faster.
- Yorkshire & the Humber – 5.8 times faster.
Even in London, where salaries are higher and house price growth has slowed, property values are still climbing 4.7 times faster than earnings. The North West (3.8 times), South East (3.7 times) and South West (3.3 times) have the smallest gaps, though affordability challenges remain.
What This Means for Buyers
For first-time buyers and movers, these figures show just how important it is to plan ahead. With property values outpacing income growth, mortgage affordability checks are becoming tighter, and securing the right deal has never been more important.
At MortgagePal, we work with clients across Cramlington, Newcastle and Northumberland to find competitive mortgage options tailored to your circumstances—whether you’re a first-time buyer, moving home, or remortgaging.
