Homes now more affordable in over half of local authority areas
House prices in more than half of local authority areas across the country are now more affordable than they were in 2007, new research has revealed.
The analysis by Yorkshire Building Society found homes in 54% of local authority areas are more affordable due to wages increasing at a higher rate than property values over this period.
However, the research also showed that the gap between the least and most affordable parts of Britain has almost doubled since the start of the economic downturn.
It found that the average home is now less affordable in every London borough, with homes in the South East and the East of England becoming 15% less affordable to buy.
The biggest improvements in affordability have come in the North East of England where affordability has increased by an average of 26%.
‘Unsurprisingly, the data shows that there is a distinct divide between the north and south of the country when it comes to housing affordability, but this has become even more pronounced since the financial crash,’ said Andrew McPhillips, Yorkshire Building Society chief economist.
He added: ‘While some northern cities, such as Manchester, are less affordable than they were in 2007, in much of the north of England, Scotland and Wales, the gap between earnings and house prices is around a third of the average for London.’