9.1 times earnings last year, which was a significant increase from 7.9 times earnings in 2020. The ONS further revealed that in 300 of 331 local authorities, housing affordability had worsened last year, as average property prices in England increased by 14 per cent, while earnings dropped by nearly 1 per cent.
However, two of the capital’s priciest locations, namely City of London and Westminster, affordability had “significantly improved”, with the house prices to earnings ratio dropping to 18.9 times earnings in the latter borough. This figure was almost 25 back in 2018. Chelsea and Kensington were identified as the least affordable local authority areas in England and Wales, with the average house priced at 36.5 times the typical annual wage.
While the increase to 9.1 times earnings was described by the ONS as a statistically significant increase, but the agency acknowledged that the data included payments to workers who were furloughed during the pandemic. Accordingly, the figures were based on actual payments received by employees on company payrolls, while in the case of furloughed workers, the ONS had assumed their usual hours.
