Recent research indicates that buying a home has become slightly more affordable in relation to income levels.
In the summer of 2022, the house price to earnings ratio reached a peak of 7.24. Since then, affordability has gradually improved, with the ratio falling to 6.55 in 2024, down from 6.62 in 2023.
Over the past year, house prices have risen by 3.8%, but wages have grown by 5%, contributing to better affordability. Additionally, the average monthly mortgage cost has decreased by about 9% due to lower interest rates. As a result, mortgage payments now account for 29% of income, down from 33% the previous year.
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Remember, your home may be repossessed if you do not keep up with mortgage repayments.
Source: Halifax, 2024
