House prices continue to outstrip wages

Property News

House prices in Greater Manchester are up to nine times higher than the average salary according to Official data released by the Department for Communities and Local Government.

The results do little to ease the minds of hopeful first-time-buyers, worried that they may never own their own home, with generation rent seemingly here to stay.

The biggest gap was in Trafford, where house prices are now 8.9 times higher than average wages. in Stockport, the ratio is 7.0 - up from 6.8 the previous year, ahead of Bury, where the data showed a gulf of 5.8 times. In Tameside and Rochdale the average wage is 5.5 times less than the average home.

Bolton and Manchester had a difference of 5 times and 4.9 times.  Salford seeing a slight increase from 2014's figures of 4.7 times to this year's results of 4.8 times higher.

Househunters in Oldham and Wigan too will have to dig deep into their pockets in search of a home, with a gap of 5.3 and 5.2 times, repsectively.

The banking crash did little to reverse the longer-term trend making it harder and higher for people to buy a home.Before the crash mortgage lenders were believed to offered a maximum of around three times a person’s salary, which rose to six times, under the property boom of the 2000s, and since then, lenders have tightened the rules again.