Young Buyers Get Boost from Improving UK Housing Affordability
- Surge in wages causes fall in house price to earnings ratio
- However, the burden of mortgages for UK households rises
Properties advertised in the window of an estate agent in Rochester, UK.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Record pay rises and the slide in property prices caused the biggest improvement in UK housing affordability in more than a decade, a glimmer of hope for young buyers who have been priced out by stretched valuations.
Mortgage lender Halifax said that a decline in property values coupled with rocketing wages has improved housing affordability markedly even though prices hit record levels compared to earnings in 2022.