Homes cost seven times earnings

A TYPICAL UK home now costs more than seven times average annual earnings, new analysis reveals.

Figures from mortgage lender Halifax show house prices have rocketed by 16.8 per cent since the start of the pandemic while wages only crept up 2.7 per cent.

The average home is now worth £279,431 – 7.1 times more than the typical annual salary which is £39,402.

The North East is the most affordable area as the average house price is £162,692 – around four times local incomes. Meanwhile London was the most expensive region, with the average property there worth £534,977 – 9.7 times more than wages in the capital.

It follows a whirlwind two years which saw house sales boom when the first lockdown was lifted in 2020. But experts are predicting a downturn in the market as the cost of living crisis starts to bite.