Over the course of the pandemic house prices have outstripped income growth in multiple areas, making it harder to afford to buy, analysis of ONS data from Legal & General Surveying Services shows.
In Wales prices have risen by 17% in three years compared to average recorded income growth of 8%, leaving prospective buyers with a deficit of 9% over the last three years.
Scotland is the second highest region in terms of price growth (12%), against income growth of just 3%.
Kevin Webb, managing director, Legal & General Surveying Services, said: “It is shocking to see the disparity between regional house prices and average income growth.
“Clearly, for those who can afford to get onto the property ladder, the pressure to reduce the costs involved in buying a home is continuing to increase.
“However, it is vitally important that prospective homeowners don’t cut costs on home surveys. The risk a prospective homeowner takes on when buying a property is massive and a home survey provides much needed peace of mind when making one of the most significant decisions in life.”
Across England, which saw some initial dips in house price when the pandemic hit, house prices have risen by 10% over three years in East Midlands and London.
There’s a similar trend in the East Midlands, where incomes have only risen by 4% over the period.
The North East experienced the slowest growth in house prices, increasing by just 4% since 2019.
Regional house price increases (%) (2019 – 2021)
|UK Region||Percentage increase|
|East of England||9%|
|Yorkshire and the Humber||6%|