We keep you informed of how the housing market is performing now
Recent analysis of UK housing market trends brings encouraging news for potential homebuyers. After years of increasing pressure on affordability, the balance appears to be shifting, with housing becoming more affordable for the second consecutive year.
The Improving Affordability Picture
According to research from Yopa, the average UK house price (£268,087) currently stands at 8.5 times the average gross UK earnings (£31,602). While this ratio remains higher than a decade ago, it marks a significant improvement from the 2022 peak, when house prices reached 9.5 times average income.
This positive trend results from two key factors:
- More restrained property price growth
- Stronger earnings increases
The last two years have seen wages outpacing house price growth, a welcome reversal of the pattern seen throughout most of the previous decade. In 2023, house prices fell by 2.7% while wages climbed by 6.3%. Similarly, 2024 saw house prices increase by 4.6%, but earnings growth was stronger at 7.1%.
As Verona Frankish, CEO of Yopa, explained: "House price growth has been largely consistent over the last decade but whilst it's one of the key contributing factors to the affordability picture, higher house prices don't necessarily mean that homebuyers are worse off."
She adds, "The good news is that over the last two years, this balance has swung back in favour of homebuyers, with consistently strong earnings growth and a subdued property market helping to re-level the playing field."
What This Means for Property Decisions
For those considering their next property move, these trends provide valuable context:
For First-Time Buyers: The improving affordability ratio creates potentially better entry conditions than seen in recent years. While housing still requires substantial investment (at 8.5 times average income), the direction of travel is positive.
For Existing Homeowners: Property values remain historically high despite more moderate growth. This maintains equity positions while potentially opening up more opportunities for those looking to move up the property ladder.
While affordability remains challenging compared to historical standards, the current trend offers reason for cautious optimism. The combination of wage growth and more sustainable house price increases creates a healthier market balance.
For anyone considering buying or selling property, now is an excellent time to review your position. Our team can help you understand how these broader market trends apply to specific properties and areas you're interested in, ensuring you make well-informed decisions based on the latest market intelligence.
Thinking of Buying or Selling in Wynyard?
If you’re looking for guidance on Wynyard’s property market, our team is here to help. No one can predict the future with certainty, but at Anthony Jones Properties, we’re committed to helping you make the best decisions.
For expert advice, call us today on 01740 807107.
