Where are Local Incomes Most Adrift of Local House Prices? And Where is Local Housing Most Affordable?
Consumer Data Research Centre
Promoting the use of consumer data and research to provide insight into societal and economic challenges (ESRC funded)
Here we look at the local level affordability of housing across England and Wales. This integrates the recently available Bricks&Logic housing market digital twin data with ONS data on local variation in levels of income. This relationship between earnings and house prices is critical to a better understanding of housing affordability.
In areas where income levels are relatively high, borrowers may find themselves able to secure larger mortgages, potentially accessing a broader range of housing options. Conversely, in areas where wages are lower, even modestly priced homes can be out of reach for many, restricting housing choices and potentially impacting overall quality of life. Understanding such balances is essential for anyone looking to buy a home, as well as for policymakers aiming to create more equitable housing policies.
In this study we explore these patterns with the following data:
National Patterns
The following map combines data for England and Wales from Bricks&Logic on property values, aggregated to Local Authority District, with ONS data on average annual incomes. The ratio between house price and income have then been calculated, presenting these as multiples of salary.
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?The most affordable area for locals based on the local salary / property price ratio is Blaenau Gwent County Borough in Wales, and Burnley in England. Unsurprisingly, the most unaffordable area for locals is to be found in London: Kensington and Chelsea.
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Across Local Authority Districts in England and Wales, there are wide variations in house price income ratios, creating a prominent geographical pattern. This general trend is particularly emphasised by differences between the South East of England relative to the rest of the UK. Moving northward, the picture in the Midlands and much of Wales is more moderate. Although there are pockets of both higher and lower house price income ratios, broadly housing costs are much more affordable. However, it is in the North of England where housing costs are comparatively most affordable. House price income ratios are lowest in the North, particularly in the belt spanning East to West from Liverpool to Hull, and along the border between England and Scotland.
Going Local…
Even at the scale of Local Authority District, there are local variation to the more general patterns. For example, the Peak District and Harrogate are less affordable relative to local income. Conversely, within Greater London, Barking and Dagenham has a more favourable house price to income ratio relative to some of the surrounding areas.
The Bricks&Logic data are available at the property level, so it is also possible to explore trends at any convenient and more granular scale. For example, the following Middle layer Super Output Area (MSOA) map shows how rates change within the local authority of Birmingham. Edgbaston is highlighted as an area where housing cost and local salaries are more out of balance relative to the surrounding areas: this is also the location of the University of Birmingham campus.
Bricks&Logic Data
These findings were all generated using the novel dataset from Bricks&Logic, which is held by the Consumer Data Research Centre . If you are interested in accessing these data for research projects in the public good, or want to know more about their content, then visit our data catalogue website:
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