House price growth continues to outpace wages

The minimum income first-time buyers need in order to buy a home in the UK’s largest cities has risen by 18 per cent in the past three years, with house price growth continuing to outpace earnings in 16 out of 20 of these.

The latest Hometrack UK Cities House Price Index has revealed that first-time buyers now need to earn, on average, £53,000 to buy a home in the UK’s 20 largest cities, up 18 per cent from £45,000 three years ago. The income to buy ranges from £25,000 in Liverpool to £82,000 in London.

The index shows that house prices have risen by an average of 14.5 per cent over the last three years, whereas the Office for National Statistics report that average wages have grown by 7.5 per cent to £489 a week over the same period.