12.5 times the average salary: Gap between earnings and house prices doubles over decade
The report found that people in Havering can expect to pay an average of 12.5 times their take home pay to buy a home in the borough. - Credit: PA
Full-time workers can expect to spend more than 12 times their annual income on buying a home in Havering, new data has found.
Following the Census 2021, the Office for National Statistics (ONS) has released statistics on housing affordability in England and Wales.
The findings use annual data on house prices and yearly earnings to calculate affordability ratios.
According to the data, house prices in Havering last year were an average of 12.5 times buyer's workplace-based annual earnings.
This has skyrocketed since 2001, when house prices were at an average of 6.6 times people's workplace-based yearly earnings.
It carried on rising to 7.7 in 2011 and 11.1 in 2020.
Nationally, the ONS report found that in England in 2021, full-time employees could expect to spend around 9.1 times their annual salary on purchasing a home.
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This has risen since 2020, when it was 7.9 times.
At a local level, the report states house prices grew faster than earning in 91pc of local authority districts.
