Property values rise at 5.3 times the rate of earnings

House prices across Britain rise at 5.3 times the rate of earnings in the last year

The latest research from eXp UK has found that the average house price in Great Britain has increased at 5.3 times the rate of average earnings over the past year, highlighting a widening affordability gap for homebuyers.

eXp UK analysed Gov data on the current annual increase in both house prices and earnings across each region of the UK, with the data revealing significant regional disparities, despite house prices consistently outpacing earnings growth across each region of the country.

The research shows that the current average house price now stands at £271,403, an increase of £10,087 over the last year. In comparison, the average annual salary in Britain has risen by just £1,921 over the same period, from £38,413 to £40,334.

This means that the average home in Great Britain has increased at 5.3 times the rate of average earnings over the past year.

The East of England and East Midlands recorded the greatest disparity, with house price growth outstripping earnings growth by 6.7 times.

Scotland (6.4 times), Wales (6.3 times), Yorkshire and the Humber (5.8 times), and the North East (5.8 times) also experienced pronounced differences between property price increases and salary rises.

London, despite its higher salary levels, saw house prices rise 4.7 times faster than earnings, alongside the West Midlands region.

The North West (3.8 times), South East (3.7 times), and South West (3.3 times) showed relatively lower, but still substantial, gaps.

Adam Day, Head of eXp UK and Europe, commented:

“This research underscores the continued challenge for homebuyers as property values continue to rise significantly faster than incomes.

With house prices growing more than five times quicker than earnings nationwide, buyers face increased pressure and reduced affordability.

Regional variations highlight that while some areas remain relatively accessible, many buyers will continue to find the market increasingly difficult to enter or move within.”

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

Damaged timber from Dry Rot
Estate Agent Talk

Mould and damp – what you need to know ahead of winter

With the winter months just round the corner, problems with damp and mould can become far more prominent. Autumntime is when many people turn on central heating systems and choose to close windows, preventing fresh air ventilation needed to allow damp air to leave a property. Unfortunately, the combination of warm and damp air can…
Read More
Breaking News

Rental price and average salary tracker – September 2025

London and South East see biggest dips in required rental salary year-on-year London and the South East saw the sharpest dips year-on-year in the average salary needed in order to rent the average home in that area. London saw a 4.2% drop, whilst the South East saw a decline of 2.9%. Yorkshire and Humberside saw…
Read More
buying at auction uk
Breaking News

The cities where buying beats renting – with just a 5% deposit

British first-time buyer mortgage payments are typically 17% cheaper than renting, even with a low 5% deposit The average 5% deposit is £11,412 based on a typical first-time buyer property price of £228,233 Among major cities outside London, the biggest gap between owning and renting is in Glasgow, where buyers could save more than £4,750…
Read More
Rightmove logo
Breaking News

Rightmove’s Weekly Mortgage Rates Tracker

Average rates for 2-year and 5-year fixed-rate mortgages   Term Average rate Weekly change Yearly change 2-year fixed 4.51% +0.00% -0.37% 5-year fixed 4.55% +0.01% +0.01%   Lowest rates for 2-year and 5-year fixed-rate mortgages   Term Lowest rate Weekly change Yearly change 2-year fixed 3.77% +0.05% -0.07% 5-year fixed 3.97% +0.10% +0.29%   Average…
Read More
Rightmove logo
Breaking News

Data and commentary from Rightmove on stamp duty reforms

Colleen Babcock, Rightmove’s property expert said: “We’ve been calling for stamp duty reform for some time now, as it’s a significant barrier for many people moving home. Abolishing it completely would remove one of the biggest barriers to moving, unlocking more moves at all stages of the property ladder. “Our data shows that only 5%…
Read More
Breaking News

Second-time buyers dominate demand for longer term fixed mortgage deals

Second-time buyers are dominating demand for longer term fixed mortgage deals, fresh data from Moneyfacts Analyser can reveal. Of those looking for fixed term deals on moneyfactscompare.co.uk: Almost two-thirds (58%) of second-time buyers who compared mortgage deals using the moneyfactscompare.co.uk website were considering terms of three years or longer in the 30 days to 1…
Read More