The average house price has increased five times faster than average earnings over the past year, highlighting a widening affordability gap for homebuyers, says eXp boss Adam Day (pictured).

The self-employed estate agency group has analysed government data on the annual increases in both house prices and earnings across the country and found that house prices are consistently outpacing earnings growth across every region, although there are some significant regional disparities.

The research shows that the current average house price is now £271,403 – an increase of £10,087 over the last year. In comparison, the average annual salary in Britain has risen by just £1,921 over the same period, from £38,413 to £40,334.

This means that the average home’s value in the country has increased at 5.3 times the rate of average earnings over the past year.

Wage growth

The East of England and East Midlands recorded the greatest disparity, with house price growth outstripping earnings growth by 6.7 times.

Scotland (6.4 x), Wales (6.3 x), Yorkshire and the Humber (5.8 x), and the North East (5.8 x) also experienced pronounced differences between property price increases and salary rises.

London, despite its higher salary levels, saw house prices rise 4.7 times faster than earnings, alongside the West Midlands region.

The North West (3.8 x), South East (3.7 x), and South West (3.3 x) showed relatively lower, but still substantial, gaps.

This research underscores the continued challenge for homebuyers.”

Day says: “This research underscores the continued challenge for homebuyers as property values continue to rise significantly faster than incomes.

“With house prices growing more than five times quicker than earnings nationwide, buyers face increased pressure and reduced affordability.

Regional variations highlight that while some areas remain relatively accessible, many buyers will continue to find the market increasingly difficult to enter or move within.”