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House prices now 7.7 times that of wages



Figures from the Department for Communities and Local Government shows that house prices in Greater Manchester are rising


New figures released by the Department for Communities and Local Government has shown that Salford is now one of the most affordable places to buy a home in England.

According to the data, the median house prices in the borough were 4.6 times higher than median earnings in 2015; one of the lowest ratios in England, which is down from 4.7 times in 2014.

At the other end of the spectrum however, Trafford was found to be the least affordable borough in Greater Manchester, and one of the biggest increases in unaffordability in England, with the gap between median house prices and median earnings growing from 7.7 times in 2014 to 8.7 times in 2015.

This was in stark contrast to Manchester however, where the average house prices are five times median earnings, which is an increase from 2014's figure of 4.9.

And the growing gap reflects a national issue of house prices outstripping the rise in wages. According to the figures, the ratio of median house prices in England to median earnings was 7.49 in 2015, up from 7.25 in 2014, and 6.92 in 2013.

The true extent to this problem can be seen when you take into account the average gross weekly earnings for full-time employees in the UK, which rose by 1.8 per cent between 2014 and 2015, whereas house prices rose by 6.4 pc in the year to September 2015.

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