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Housing affordability in England and Wales returned to its pre-pandemic levels last year after wages rose much faster than house prices, official figures show.
The median average home in England last year cost £290,000 — 7.7 times the median average earnings of a full-time employee. This was below the 7.9 reported in 2019, and down from a peak of 9.0 in 2021, figures from the Office for National Statistics showed.
The ratio of house prices to earnings rose sharply between 2020 and 2021 as interest rates were cut to rock bottom and the UK government brought in tax incentives for home buyers.
Since 2021 house prices in England and Wales have increased by 1 per cent, while average earnings have risen by 20 per cent. The sharp rise in inflation and interest rates over that time has depressed home sales and prices, and led to wage increases.
https://www.ft.com/content/1e6bb9d3-2a96-4a28-be02-4aaea9e47a9f
