According to an analysis by Leeds Building Society, house prices have reached their least affordable level in nearly 150 years, indicating that the dream of homeownership is fading for millions.
The last time it was this hard to get on the property ladder was in 1875, when average annual earnings were only £40, making it difficult to afford a typical home worth £372.
In 2022, the average home value was 9.2 times higher than average earnings, with the average residential property valued at £294,329.
Although Leeds reported record mortgage lending and profits, the CEO has called for a long-term plan for housing that includes building more homes, helping first-time buyers save for deposits, and developing affordable ways to get on the housing ladder.
The problem of housing affordability has caused homeownership among 25 to 34-year-olds to fall from 51% in 1989 to 28% in 2019, with experts predicting that house prices will fall by 7% in 2023 due to the cost of the living squeeze on household’s finances.
»Leeds Building Society reports house prices reach their least affordable level«
↯↯↯Read More On The Topic On TDPel Media ↯↯↯