The gap between property prices and salaries continues to grow


A new research has found that the gap between how much property costs and how much people earn continues to get bigger.

The data was put together by property portal Zoopla and revealed that across the country average house price growth is out-doing average salary growth by 1.13%. The report shows that average home values have risen by 0.52% whilst salaries have actually experienced a drop of 0.6%.

Another research, put together by Adzuna, a job search engine website, showed that currently the cheapest places, i.e. the smallest gap between house prices and salaries, can be found in Hull, Newcastle and Bradford.

According to the Zoopla findings, Luton, close to London, is the places with the biggest gap at 7.99%. In Luton, prices increased by 5.06% over the last twelve months whilst salaries dropped by a spectacular 2.94% during the same time.

Stevenage, located north of London, came in second with a house price growth that was 6.41% higher than the growth of average salaries. High Wycombe, located north-west of London, came in third with property prices increasing at a pace 5.43% better than salaries.

When it comes to the capital itself, property price growth is currently 19.53 times the average salary. This helps shine another light on how rarely Londoners will be able to afford to own their home over the next few years.

With house price growth still rising and salary growth dropping in many areas, home ownership is becoming more and more of a distant dream for many young adults, with very little change in sight.

Lawrence Hall is Zoopla’s spokesperson and commented the report’s findings:

“Getting on the property ladder can be tough, especially if you’re looking to buy in an area where property prices are rising faster than salaries. If you’re a first time buyer and can be flexible where you buy, then why not look at the areas where salaries are rising faster than property prices. For example, in Chelmsford property prices are rising at a steady rate, but the average salary is rising even faster.”

“The data also shows a clear affordability north-south divide, where the top 10 most unaffordable places regarding house price to salary ratio are all in Southern England. In contrast, the top 10 locations where house prices are more in line with salaries, are predominantly in Northern England,” he concluded.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

The gap between property prices and salaries continues to grow

The gap between property prices and salaries continues to grow


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.