Pay outpacing house prices in most areas of Britain, says study
Wages have risen faster than house prices in most parts of Great Britain in the last the decade, according to a new study.
A report by the Yorkshire Building Society found that across London and much of the south of England, it has become "increasingly difficult for first-time buyers and those wanting to move up the housing ladder".
The report implies a growing north-south divide, with some exceptions such as Manchester, which have become less affordable since the 2007 crash.
Chief Economist at the Yorkshire Building Society, Andrew McPhillips said: "The north of England, Wales and Scotland present a different picture entirely, with many places more affordable than they were before the credit crunch," he said.
“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.”
The study looks at earnings data for each area from the Office for National Statistics (ONS) alongside Land Registry house price data in local authorities.
The group concludes that wage rises have generally matched increasing house prices compared with 2007 across Great Britain.