UK wage growth has finally overtaken house price growth, meaning the property affordability gap is narrowing for some home buyers.
The Rightmove Property Index for April has revealed that income is growing by 3.4 percent while average UK asking prices for property are currently standing at 2 percent.
Market showing resilience
The variations in regional prices across the UK means that some areas have become even more affordable, although other costs such as rising rail fares mean the benefits of rising wages may not be as keenly felt.
The areas where buyers are most likely to see their income stretch further when it comes to buying a new home are England’s north-west with Cumbria regularly topping lists of most affordable places to buy. The north-east and Yorkshire and the Humber are also increasingly affordable.
According to Rightmove, the property market has proved its resilience in the face of Brexit uncertainty, with family homes in particular in high demand.
Looking for value
Miles Shipside, Rightmove director and housing market analyst, said: “Some sectors of the market and some parts of the country have strong buyer demand and a lack of suitable supply.
“It’s one of the most price-sensitive markets that we’ve seen for years, with buyers understandably looking for value or for homes with extra quality and appeal that suits their needs.”
Ideal escape route
On the rising demand for family-sized properties and the impact of Brexit, Shipside added: “Properties in this middle sector offer the ideal escape route to families looking for more bedrooms, more space and their choice of schools.
“They are often second-steppers outgrowing their first property, and it gets harder to postpone a move with growing children.
“They may have already delayed for a year or two waiting for Brexit clarity, and understandably their patient is wearing thin.
“While some movers are awaiting the outcome of deal or no deal, many families are keeping on dealing in the housing market.”