Woah! UK houses now cost six times annual wages

Buying a home becomes a distant dream for many

The cost of an average UK home now costs six times average annual earnings, according to the Nationwide.

Over the last three years, house prices have risen by 20 per cent as compared to a wage growth of just six per cent.

In the year to the end of October, prices went up by 4.6 per cent down from 5.3% in September.

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “After 15 successive monthly increases UK house prices were unchanged in October (after taking account of seasonal factors). As a result, the annual rate of house price growth slowed to 4.6 per cent from 5.3 per ent in September, though this is still in line with the growth rates prevailing since early 2015.

“Measures of housing market activity remain fairly subdued, with the number of residential property transactions c10% below the levels recorded in the same period of 2015 in recent months. However, this weakness may still in part reflect the after-effects of the introduction stamp duty on second homes introduced in April, where buyers brought forward transactions to Q1 to avoid additional stamp duty liabilities. Policy changes impacting the Buy to Let market may also be playing a role in dampening activity.”

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