Wiltshire house prices are now 10 times higher than the county’s average income
Those who want to get on the property ladder in Wiltshire will need to borrow more than 13 times the average income to buy a house. The latest data has revealed that homes across the country are more than twice as unaffordable as they were at the turn of the century.
Figures from the Office for National Statistics revealed that in the 12 months to September 2021, the average house price in England and Wales cost around 8.9 times the average income. That’s up from 5.1 times in 2002.
But in Wiltshire, the situation is even worse. Those wishing to buy a home in the county will need to borrow 9.9 times the region’s average income. In 2003, they would have needed only 7.0 times the average.
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The figures used take into account the income of each member of the household, plus any income they receive from benefits, but before items such as taxes, national insurance and pension payments.
These figures take into account the income of each member of the household, as well as any income from benefits, before items such as taxes, national insurance and pension payments are taken into account. A comparison of separate numbers at the neighborhood level (areas of approximately 7,200 people), using net household incomes that take into account these payments, shows that the true reality of access to the property ladder can be even more striking at the local level.
You can see the numbers for your neighborhood using our interactive postcode search.
In one area of Ramsbury, Ogbournes and Avebury in Wiltshire, an average family would need to borrow 13.1 times the local average annual income to afford a house. This makes it the least affordable district of the department.
While the average household net income in the neighborhood is estimated at £40,945 a year, the average house sold for a whopping £537,250 up to September 2020. Meanwhile, a house in a neighborhood from the Chippenham Pewsham area – the most affordable in Wiltshire – could be bought for just 5.1 times the average household income.
There, the average net household income is estimated at £45,386 a year and the median house price is just £230,250. Since 2014, the Bank of England has set the maximum loan ratio at 4.5 times income. Only 15% of all mortgages are allowed to exceed this.
Based on this maximum borrowing level, none of Wiltshire’s neighborhoods are actually affordable for those who live there, on average. However, it’s important to note that the numbers don’t include any deposits a family might have saved.
In England and Wales, the least affordable area to buy a house is in an area of Knightsbridge, Belgravia and Hyde Park in Westminster, London. The average house price there, at £2.5million, is 70.8 times the average income.
Outside of London, the most expensive area is in the Oxshott and Stoke D’Abernon area of Elmbridge, Surrey, where homes typically sell for £1.2million, or 25.0 times average income. Meanwhile, the most affordable place to buy a house is in a neighborhood in the Ayresome area of Middlesbrough, where the average cost of a property in the year to September 2021 was £45 £000. This is only 1.7 times more than the average income.
Overall, just 12% of neighborhoods in England and Wales would be affordable for the average household, based on maximum borrowing levels of 4.5 times income.