Nottingham among areas where homeownership affordability is plummeting

Nottingham among areas where homeownership affordability is plummeting

Nottingham has been one of England’s worst areas for declining homeownership affordability in the past decade, analysis from moving platform has revealed.

The average price of an existing dwelling has gone from £95,500 in 2013 to £186,000 as of September 2023.

Over the same period, the median annual income has increased from £25,217 to £30,151. That means the average house price was 3.79 times the median income in 2013 and has now almost doubled to 6.17 times the median earnings, representing a rise of 62.80%.

Various areas of London top the study.

The London Borough of Barking and Dagenham saw the most significant decline in homeownership affordability across England.

House prices more than doubled compared to income, with the ratio soaring by 100.73%.

While the average price for an existing dwelling rose by £202,500 in the area, the median annual earnings only increased by £2,182.

Hillingdon in West London took the second spot, where the average house price in the region shot up by £230,000 to £495,000.

Meanwhile, the median annual income of residents has only increased by just £143. The ratio of house prices to earnings has risen by 85.98% during this time.

It’s a similar story in the London boroughs of Waltham Forest and Redbridge.

Oadby and Wigston in Leicestershire is the area outside of London where homeownership affordability has decreased the most, ranking fifth in the overall study.

The house-to-price-to-income ratio has risen by 67.90% over the last decade, with the average house price increasing by £129,000 and the median annual income growing by £2,644.