Photo: PA
Devastating new data released by the Financial Times this week shows the depths of the horrors faced by first-time buyers and those looking to get onto the property ladder. According to the research, houses are now at their most unaffordable ‘in almost 150 years’.
The shock figures are based on the principle of house prices as a multiple of average earnings. At the turn of the century, homes were worth roughly four times more than the average yearly wage for a British citizen in full-time employment.
However, the situation has worsened dramatically in the last two decades. The FT calculates that average house prices are now more than NINE TIMES higher than the average annual salary. It is a damning revelation, and one that highlights the stark reality of the UK’s housing crisis.
Since the Tories came into power in 2010, there has been a sharp upswing in the disparity between wages and house prices. As we head into a general election this year, these are the facts and figures that can cause serious damage to the Conservative Party’s campaign.
This study certainly undermines claims made by one of the biggest names in banking last week. Sir Howard Davies, chairman of Natwest, said prospective buyers have to save, and that ‘is the way it always used to be’, and that ‘it is not that difficult’ to buy a house in Britain.
His comments sparked a massive backlash, upsetting leading figures on both the left and right of the political spectrum. Nigel Farage, who has had his own personal issues with Natwest recently, stated that Davies was ‘entitled’ and had ‘no idea’ about the real world.
