The Gmb Union's Study On Priced Out Ftb's

[No6]

I don't recall this making news just before Christmas so apologies if this has been posted before, but there are lots of interesting stats here. The GMB Union have come up with some interesting stats on priced out first time buyers.

According to figures from the GMB Trades Union, average house prices in England and Wales are now 6.8 times the national average annual salary.

"202 of 364 areas in England and Wales have average house prices at seven times or more the average annual salaries earned in those areas. In 43 of those areas, house prices are ten times or more the average earnings in the areas. The top 20 of these are Kensington & Chelsea (24.4 times), Richmond upon Thames (13.2), Chiltern (13.2), West Devon (13.1), Cotswold (13.1) Elmbridge (13), South Hams (12.6) Torridge (12.2) Wealden in Sussex (12.2), Camden (12.1), Rutland (11.9), Sevenoaks (11.9), Wandsworth (11.6), South Shropshire (11.4), Derbyshire Dales (11.4) Ryedale (11.4) Waverly (11.3), Tunbridge Wells (11.1), City of Westminster (11.1), Epping Forest (11.0) and Bridgnorth (11).

Meanwhile there are only 47 areas in England and Wales where house prices are five times or less the average annual pay in those areas. The lowest ratio is in Burnley in Lancashire where house prices are 3.2 times the average annual pay in that area. The average pay in Burnley is 21,993 pounds per annum and the average house price is 69,499 pounds. For England and Wales as a whole the average annual salary for full time workers is 28,740 pounds and average house prices are 6.8 times that figure at 197,201 pounds.

GMB ranked the data from all 364 councils in England and Wales for which figures are available by the ratio of average pay and average house prices from the highest to the lowest. It shows that young first-time buyers on even average wages are priced out of private house ownership in 202 of the 364 areas in England & Wales. Average house prices in England and Wales are now 50% above the long run ratio to average earnings. According to the GMB, house prices need to move sideways for a decade so that average wages can catch up."

http://www.gmbunion.org/news2.html

Scroll down to news 13th December.