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Home and Mortgage Affordability background

The goal of these charts is to provide a simple illustration of homes in selected major UK cities that people working full time in 12 popular jobs could afford.

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We have combined three key sources of information to create them: 

•    ONS Annual Survey of Hours and Earnings 
•    Land Registry Paid Price Data 
•    reallymoving.com data & analysis


Chart 1: UK median 2015 salaries by job

This data from the ONS Annual Survey of Hours and Earnings Study of 2015, provides a median salary by job type by region. We have used these regional differentials to estimate the median salary for each job type for selected major UK cities.

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Chart 2: UK median salaries 2015 by region

Property prices are based on completed transactions in 2015 recorded in the Land Registry Paid Price data for residential property. Each city is defined by the main postcode(s) that that city covers.

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Chart 3: Average UK property prices 2016

All salaries were based full time roles only.

To estimate the proportion of homes that are affordable we have calculated a maximum affordable price based on a deposit equal to 6 months’ salary, plus a mortgage of 4.5 times salary, so 5 times salary in total. We have then calculated the proportion of properties in each location that were sold for less than 5 times the local median salary for that role.

The first graphic shows the proportion of properties that people in each job for a selected city could afford. The second graphic uses the same data, but shows the proportion of properties that people in each city for a selected job.


 

Take a look at our interactive Home and Mortgage Affordability infographic and find out what percentage of homes people can afford by job, UK salary and city.

These figures are correct as at July 2016.