A combination of foreign demand, including those from emigrating Hongkongers, and a rush to beat the impending property tax, pushed UK home prices to their most unaffordable level in 10 years, according to a study by a London-based real estate agency.
Benham and Reeves analysed the average house price to income ratio based on average property values and the average net salary over the last 10 years. While the average net salary in the UK grew to £25,123 (US$34,480) in 2020, the average house price was nearly 10 times more at £249,633, corresponding to a price to income affordability ratio of 9.94, meaning a minimum of a year’s salary is needed for the average deposit.
The affordability ratio has increased from 8.16 in 2011, with London remaining the least affordable with a score of 15.74. Read more…..
Chart of the Day
CNBC’s Becky Quick sits down with Berkshire Hathaway CEO Warren Buffett. The billionaire investor weighs in on Kraft Heinz, Apple, the financial sector and his own investment strategy.