The dream of owning a home is becoming increasingly distant for many first-time buyers in England. Although wages are rising, the relentless climb of house prices continues to put property ownership out of reach. Buckinghamshire-based professional home buying firm Open Property Group has voiced serious concern over worsening affordability in the housing market.
Despite a 5.6% rise in the average annual salary over the past year, Open Property Group reports that house prices in most regions are growing at a faster pace than incomes, creating a widening affordability gap for would-be buyers.
According to their research, all regions in England—bar London—have seen house prices rise by at least 3% over the past 12 months. London was the only area to record a marginal dip in prices.
In particular, Yorkshire and the Humber led the way with a 6.5% increase, while the Northeast and Northwest saw prices grow by 5.6% and 5.4%, respectively. These figures reveal a deepening mismatch between earnings and house prices, especially in areas where property values are outpacing wage increases.
Jason Harris-Cohen, Managing Director of Open Property Group, expressed concern, stating:
“While salaries are growing faster than house prices in some areas, affordability remains a challenge for many aspiring homeowners due to the persistent gap between income and property values.”
The regional breakdown from Open Property Group is as follows:
- Yorkshire and the Humber – average house prices increased by 6.5%
- Northeast – average house prices increased by 5.6%
- Northwest – average house prices increased by 5.4%
- East Midlands – average house prices increased by 4.2%
- West Midlands – average house prices increased by 4.1%
- Southwest – average house prices increased by 3.8%
- Southeast – average house prices increased by 3.4%
- East of England – average house prices increased by 2.9%
- London – average house prices decreased by 0.1%
Open Property Group continues to assess market conditions and advocates for targeted solutions to close the affordability gap and keep homeownership within reach for more people across England.
