Can the average worker afford to buy a house in Norfolk?
PUBLISHED: 18:21 28 March 2019 | UPDATED: 09:10 29 March 2019
People buying a house in Norfolk can expect to pay on average, eight times their annual salary, in line with the rest of the UK. But which area of our county is the least affordable?
The ONS has today released figures which show how affordable houses are across England and Wales. In Norfolk, the figures vary hugely from 6.5 in Yarmouth to as much as 10 times in North Norfolk.
Breckland, Broadland and South Norfolk were not far behind, at nine times your salary with King’s Lynn and West Norfolk at eight and Norwich one of the lowest, at 7.
The national picture shows affordability in England and Wales has stayed at similar levels in 2018, following five years of decreasing affordability.
But Nick Taylor, chairman of the NDAEA, Norwich & District Association of Estate Agents, from Hadley Taylor, said: “House prices in Norfolk are higher today than they’ve ever been. However, prices haven’t risen for several months and are not likely to rise higher any time soon.
“But calculating affordability in terms of multiples of average earnings is often misleading. First time buyers buy smaller, cheaper properties and not ‘average’ properties. For example, there are 25 flats currently on the market in Norwich each priced below £100,000. This demonstrates that there is still an acceptable level of affordability for young people wanting to step onto the property ladder.
“Very few first time buyers want to buy a property on the North Norfolk coast which is an area inhabited, on the whole, by well to do retirees and second home owners.”
Copeland in Cumbria remained the most affordable local authority where average house prices are only 2.5 times earnings but not surprisingly, Kensington and Chelsea remained the least affordable with house prices being a staggering 44.5 times average salaries.
The average price of a newly-built property in 2018 was 9.6 times average annual workplace-based earnings while the average price of an existing property was 7.6 times average earnings.
Please note, figures have been rounded up or down.
To see the full ONS, Office for National Statistics, report, click here
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