Homes ‘more affordable’ in the East Riding

In the East Riding of Yorkshire last year the housing affordability ratio was 6.1.
In the East Riding of Yorkshire last year the housing affordability ratio was 6.1.

The good news for prospective buyers in the East Riding of Yorkshire is that houses became slightly more affordable in 2018, new figures show.

Each year, the Office for National Statistics (ONS) calculates how affordable housing is in England and Wales, by dividing the median house price in local authorities by the median full-time annual income.

The lower the ratio is, the more affordable homes are to buy. The ONS uses the median instead of the mean as the average, which is the exact middle number in a series, so not distorted by the extreme highs and lows.

In the East Riding of Yorkshire last year the affordability ratio was 6.1. That means prospective buyers need around six times their annual salary to buy a home.

That’s 2% lower than in 2017, when the ratio was 6.2.

Median yearly earnings in the East Riding of Yorkshire have risen by 5% and the average house price has increased by 3% in 2018.

Despite the recent improvement in the affordability ratio, house prices have increased drastically since 2002, when the ONS first began comparing this data. The average home in the East Riding of Yorkshire then cost £74,950. The 2018 figure is 133% higher.

In that time the average annual salary has only increased by £8,449, a 42% rise.

The East Riding of Yorkshire’s affordability ratio is below the average for England and Wales, which is 7.8.

Nigel Henretty, head of housing analysis at the ONS, said: “After five years of decreases, the estimated affordability of homes in England and Wales remained static in 2018.

“It’s also notable that the estimates show newly built homes remained significantly less affordable than existing properties.”