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Pay is Outpacing House Prices

More than half of Britain has seen wages rise faster than house prices in the last 10 years, research by a mortgage lender has suggested.

Edinburgh and Birmingham are among the 54% of areas where pay has risen more dramatically than house prices.

The building society also suggested that there has become more of a north-south divide, saying that it has become “increasingly difficult for first-time buyers and those wanting to move up the housing ladder”, Andrew McPhillips, chief economist at the Yorkshire Building Society.

While some northern cities, such as Manchester, are less affordable than they were in 2007, in much of the north of England, Scotland and Wales, the gap between earnings and house prices is around a third of the average for London.

In England, house prices rose faster, with the typical home costing 8.2 times median average pre-tax earnings for a single full-time employee compared with 7.9 times in 2007.