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The one chart that shows how UK houses are now even more unaffordable | The one chart that shows how UK houses are now even more unaffordable |
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The Nationwide building society has this morning reported that average house prices rose 0.2 per cent this month. | |
That takes the average house price up £2,185 to £202,436. | |
But the most depressing fact in the Nationwide's report is that the ratio of average house prices to average earnings has increased once again.The ratio - which is a decent way of gaguing how (un)affordable houses are - grew from 5.84x average incomes in March to 5.89x average incomes in April: | |
That's the highest ratio since April 2008, when the UK was entering recession. | That's the highest ratio since April 2008, when the UK was entering recession. |
House price growth may be slowing, as the Nationwide's report points out but they are still rising faster than people's earnings. | |
The upshot? Houses are still becoming more unaffordable to those on average earnings who want to get onto the property ladder. | |