(un)affordable Housing Crisis - 2017

A recent International Housing Affordability Survey (2017) has highlighted some of the most expensive places to live in the world by comparing average house prices with average incomes. 

The United Kingdom has seen a pattern of increase in land and property value as against income, and none of the UK’s 21 major housing markets are classified as being affordable. 

Although the perception is that London is the most expensive place to live in the UK, where else outside of the Capital has seen any real change? 

The south coast is arguably one of the most expensive places to live outside of the City, but what’s surprising about the findings is that Bournemouth is now categorised as severely unaffordable, with the average house price of £265,000  being 8.9 times the average income. Though, it is not clear whether including desirable areas such as Sandbanks in Poole, and Christchurch, have skewed the figures.

Historically, the United Kingdom has seen a consistent median house price index of 2.0 – 3.0 times the average household income. Recently, however, these have skyrocketed for countries such as the United Kingdom, Ireland, New Zealand and Canada. That’s no surprise, as we are all aware of the increase in property values in both the residential and commercial sectors. This is great for investors and developers in the short term, but the impact on long-term disposable income will begin to have a detrimental effect on the affordable housing of the middle-class residential market. 

This survey highlights the importance of developing higher skilled (and better paid) jobs if an area’s fortunes are to be improved, as well as developing new houses.

A recent International Housing Affordability Survey (2017) has highlighted some of the most expensive places to live in the world by comparing average house prices with average incomes.”