Tuesday, February 11, 2014

Average earners would need wages to more than DOUBLE to afford their first home

In 2012, house prices had spiked to £253, 816 - some 10 times an ordinary worker's salary


Income pressure: Average earners need to see their wage DOUBLE to afford their first home

Average earners in England would need to see their wage more than DOUBLE to afford their first home, shock research has found.

Pay packets have gone up by around 50 per cent since 1997 - but house prices have soared by more than 200 per cent, the housing charity Shelter has found.

The growing gap is leaving families unable to get on the housing ladder.

The average wage in 1997 was £16,500 a year, according to the Office for National Statistics.

In the same year the average house price was £75,762 - around five times people's salaries.

By 2012 average pay had risen to £25,932 - but house prices had spiked to £253, 816, some 10 times an ordinary worker's salary.

If wages had kept pace with the runaway houses prices they would now be more than £55,000 - some £29,000 more than they are.

Overall, there is not a single area in the country where pay rises have matched runaway house prices.

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