Rent is now cheaper than mortgage payments: Where in London are workers are being priced out of the property market the fastest?

It is now cheaper to rent a home than buy one for the first time since 2010, due to the rise in interest rates which are making getting a foot on the property ladder seem impossible for many. According to Zoopla, London boroughs are some of the worst affected areas in the country for mortgages costing more than the average rental, despite rocketing rent prices in the capital.

A new study from Online Mortgage Advisor explores where local workers are being priced out of the local property market the fastest by looking at how much property prices have outgrown local wages during the past 10 years. To do this, we calculated the ratio change between the median house price and median annual salary in 2013 vs 2022 in 330* local authorities from 12 regions across Great Britain. A higher ratio indicates a larger growth in the gap between property prices and local earnings, meaning workers were priced out of the area at the fastest rate.

The research revealed that Greater London was the British region where workers were priced out the most, while also revealing the boroughs with the largest change in the affordability ratio.

 

 

279 from England, 21 from Wales and 30 from Scotland. 

Key findings:

Londoners have been priced out of the property market the fastest in the country, with an average property price to salary ratio increase of 3.78. Properties in all London boroughs became more unaffordable compared to average salaries in the past 10 years. Kensington and Chelsea, Hillingdon and Barking and Dagenham were the worst affected London boroughs according to our research.

Please credit the information with a link to Online Mortgage Advisor’s research page should you wish to use the data for a story: https://www.onlinemortgageadvisor.co.uk/content/priced-out-property-2023 

 

-Although the project page only shows data up to June 2022, the data in this email is updated to

The original article can be found here