A new report from the Nationwide Building Society has shown that the standard UK property now costs approximately six times average annual earnings. This comes despite house price inflation is slowing throughout the UK.
The Nationwide report showed that on average, UK property prices have risen by 20% over the course of the past three years. Over the same period, average wages in the UK have risen by just 6%, increasing the affordability gap for people wishing to purchase a property in the UK.
On an annual basis, up to the end of October, UK property prices increased by 4.6%, down from the 5.35 figure in September. It is now eight years since the price/earnings ratio displayed such a large discrepancy.