Record house price to income ratios

11 December 2006

House price to income ratios for all working households in the country are at record levels, with mortgage cost to income ratios equalling the same peak levels seen in 1990.

A study by the Joseph Rowntree Foundation reveals that house price to household income ratios for younger working households exceed five to one in 78 areas, twice the 2004 figure.

In 51 areas, more than two in five such households have incomes sufficient to pay a social rent without relying on housing benefit but still can't afford to buy a home at even the lowest house prices.

The least affordable areas in the country on this measure are Penwith, Carrick, South Buckinghamshire, Kerrier and the Mole Valley.

The highest 2005 house price to income ratios are in Kensington and Chelsea, North Cornwall, Ryedale, North Norfolk and the City of London.

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