Homes more affordable in many areas than before the credit crunch, data shows

Homes more affordable in many areas than before the credit crunch, data shows [Photo: Norasit Kaewsai via iStock]

Back in 2007, before the credit crunch hit and saw property prices across the country tumbling, the market had reached a peak, with the valuations for houses hitting the highest level they had ever reached. For years afterwards, prices struggled to get back to where they had once been, before finally achieving it in the last few years. 

However, even in spite of the fact prices are now generally at all time highs across the country, new evidence suggests that homes across many parts of the country are now more affordable than they were before the credit crunch struck. 

According to data published by the Yorkshire Building Society recently, as many as 54 per cent of local authority areas across the country have seen wages rising faster than house prices since 2007, leaving properties generally more affordable than they had been previously. 

However, while there are some that are seeing improvements in affordability, other areas across the nation are struggling somewhat, with homes increasing in value far faster than people's income levels. According to data from the report, the best performers have seen improvements in affordability of 42 per cent, while other areas have got 61 per cent less affordable in the same period. 

There remains a distinct gap in the UK when it comes to the conditions experienced in the north and south of the country. While some areas of the north and into Scotland have seen house prices fall to as little as four times the yearly income average, some in London continue to creep towards being 20 times more expensive. 

"Unsurprisingly, the data shows that there is a distinct divide between the north and south of the country when it comes to housing affordability, but this has become even more pronounced since the financial crash," said Andrew McPhillips, Yorkshire Building Society’s chief economist.

"However, the north of England, Wales and Scotland present a different picture entirely, with many places, such as Edinburgh, Peterborough and Birmingham, becoming more affordable than they were before the credit crunch," he added.