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Home > The Property Podcast > TPP181: Is UK property unaffordable?
Podcast: The Property Podcast
Episode:

TPP181: Is UK property unaffordable?

Category: Business
Duration: 00:22:52
Publish Date: 2016-09-01 01:00:00
Description:

Depending on who you listen to, it's either the perfect time to invest in property or it's horrendously overvalued and ripe for a crash.

This week, we look at the data behind the claims that UK property is unaffordable – and show how easy it is to cherry-pick one measure to support an agenda. We look at affordability through the lens of:

  • Actual house prices (and see the shocking impact of inflation over the long-term)
  • Prices after adjusting for inflation, to identify the specific extent of house price inflation
  • The price of houses as a multiple of earnings, and whether this is historically high
  • The ongoing affordability of housing, looking at the monthly cost of a mortgage as a percentage of income

There are some fascinating stats – as well as some really important insights into how affordability varies across regions, and where value might be found.

 

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