House prices across Great Britain have risen at more than five times the rate of average earnings over the past year underlining growing concerns over housing affordability, according to new research from estate agency network eXp UK.

The analysis, based on official government data, reveals that the average house price has increased by £10,087 over the last 12 months, rising to £271,403.

In contrast, average annual earnings have grown by just £1,921, from £38,413 to £40,334. This means that house prices are increasing at 5.3 times the pace of wage growth.

COMPLEX HOUSING MARKET

The widening gap between property prices and earnings adds further complexity to the UK housing market as policymakers, lenders and developers grapple with long-standing supply constraints, interest rate volatility, and household affordability pressures.

While recent house price growth has been more subdued than in previous years, the latest figures suggest that earnings are failing to keep pace, potentially pricing out large segments of the population, particularly first-time buyers and younger households.

REGIONAL VARIATIONS

The disparity is even more pronounced in certain regions. The East of England and East Midlands recorded the largest gaps, with house prices rising at 6.7 times the rate of earnings growth. In Scotland (6.4 times), Wales (6.3), Yorkshire and the Humber (5.8), and the North East (5.8), the mismatch remains acute.

Even in London, where salaries are higher, house prices still grew 4.7 times faster than wages – matching the figure for the West Midlands.

The North West (3.8), South East (3.7), and South West (3.3) posted the narrowest, but still significant, gaps between property price and income growth.

HOMEBUYER CHALLENGES

Adam Day, Head of eXp UK and Europe, said: “This research underscores the continued challenge for homebuyers as property values continue to rise significantly faster than incomes.

“With house prices growing more than five times quicker than earnings nationwide, buyers face increased pressure and reduced affordability.

“Regional variations highlight that while some areas remain relatively accessible, many buyers will continue to find the market increasingly difficult to enter or move within.”