uk housing

house-price-to-earnings-ratio

UK House Price to income ratio and affordability

An examination of UK house price affordability.This shows that for first-time buyers the average house price is over five times average earnings. This is much higher than previous historical trends. There is also a regional disparity. WIth the ratio of house price to earnings over 10 times in London. In many parts of the country, potential buyers are being kept out of the market due to house prices being much higher than average incomes. For young people especially, owning a home has…

Policies to ease pressure on the housing market

Policies to ease pressure on the housing market

Readers Question: What policies could be used to ease pressure on housing market? Firstly, the main pressure in the UK housing market is the persistent and continued above inflation price increases. Back in 2004, Kate Barker’s report into housing market trends found that the UK would need to build 250,000 houses to reduce the house price inflation rate to 1.1%. But, since 2004, the UK housing market has fallen short of this target. In the middle of the recession, the number of home starts fell to just over 100,000….