A new report has highlighted just how hard it is for young people to get on the property ladder in 2022.
According to the Zoopla report, the average two-earner household will have to pay four times their combined annual income to buy a house of average value in the UK, which now stands at £263,000.
The situation has got worse over the last 12 months because house prices have grown nearly twice as fast as wages.
For the third year running, Shildon in County Durham is named the UK’s most affordable town to buy. The average house price there is £71,000: roughly equivalent to the average two-earner household’s annual income.
Several other towns in County Durham rank among the most affordable – as do Cleator Moor in Cumbria and Stevenston and Cumnock in Scotland. In all of these places, the average house price is less than or roughly equivalent to 1.5 times the average two-earner household’s annual income.
Check out the 10 most affordable towns to buy below.
In London, the boroughs of Barking, Dagenham and Bexley, Tower Hamlets and Croydon are named the most affordable to buy. Still, in all of these boroughs, the average two-earner household will have to pay five and a half times their combined annual income to buy a house of average value there. No wonder so many young people are embracing the idea of forever renting.
Check out the 10 most affordable London boroughs below.
Gráinne Gilmore, head of research of Zoopla, said: “The cost of living crisis has meant that affordability has been pushed to the forefront of buyers’ minds this year, more than ever. Our affordability data helps buyers to make informed decisions about where their money may go further across Britain, especially those who may have hidden equity in their home.
“Once again, we are seeing that many of the most affordable areas for potential home buyers are across Scotland and the North of England which could be attractive to those still searching for the perfect post-pandemic family space.”
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