By Sharon Dale

Published 28th Mar 2022, 20:47 BST

Updated 28th Mar 2022, 20:50 BST

New data from the Office for National Statistics has revealed the gulf between soaraway property prices and average earnings. House prices grew faster than earnings in 91 per cent of local authority districts last year, leading to a radical reduction in housing affordability, according to the Office for National Statistics. In England in 2021, those working full-time could typically expect to spend around 9.1 times their workplace-based annual earnings on purchasing a home, which is a significant rise since 2020, when it was 7.9 times their yearly salary.

In England, average house prices increased by 14 per cent in 2021, while average earnings fell by nearly one per cent. The ONS say that the changes in affordability were “statistically significant” when compared with the previous year. Copeland in the North West remained the most affordable local authority in England in 2021 as average house prices were 2.7 times average yearly earnings. Kensington and Chelsea remained the least affordable with average house prices being 36.5 times the average wage.

In Yorkshire, the least affordable place to buy a home when calculating the property price to average earnings ratio is the Harrogate district, which includes Harrogate, Knaresborough, Ripon, surrounding villages and parts of Nidderdale. Average house prices in the district were 10.9 times the average yearly salary compared to 4.5 times in 1997.

Young people are being locked out of the housing market as wages fail to keep pace with house price inflation

Hambleton, which includes Northallerton, Bedale, Thirsk, Great Ayton, Stokesley and Easingwold and a host of sought-after villages, is the second least affordable with property values 9.7 times the average salary compared to 4.9 in 1997. Nearby Ryedale, which includes Malton, Kirkbymoorside, Pickering and Helmsley is the third least affordable with prices 9.5 times earnings, which is up from 4.9 in 1997. Richmondshire, which takes in Richmond, along with a large swathe of the Yorkshire Dales, is fourth least affordable with home prices 8.5 times the average salary up from 4.2 in 1997.

Estate agent Tony Wright, a partner at Carter Jonas Harrogate, says the spa town is a huge draw for buyers within Yorkshire and this has pushed house prices well out of reach of many first-time buyers. He adds: “The ONS figures do not surprise me at all. Harrogate has become more cosmopolitan and desirable and it attracts visitors like bees to a honeypot. “House prices have seen considerable growth and that hasn’t put off buyers who tend to be affluent and are willing to make the investment.”

The most affordable areas in Yorkshire are Hull, where the average house price is 4.3 times the average salary, Barnsley where it is 5.1, Doncaster with 5.6 times and Rotherham, which is 5.7. Wakefield is only marginally behind with 5.9, which is just one of a number of reasons for its increasing popularity with those priced out of Leeds, where the average home is 7.1 times the average wage.

Average house prices were between 12 and 24 times average earnings in 23 per cent of local authority areas in England and Wales. The ONS say that these proportions have increased since 2020, when it was 15 per cent. Only 16 local authority areas in England and Wales had affordability ratios of five or less, compared with 27 in 2020, and 270 in 1997.

Over the last 25 years, housing affordability has worsened overall, with the England and Wales average affordability ratio moving from around 3.5 to 9.1. Over the last two decades, affordability has worsened the most in London, which is driven largely by house prices increasing faster than earnings.

In 2021, the six least affordable local authorities in England and Wales were all in London. The next three were in the surrounding South East region and the tenth highest in the East of England. The most affordable local authorities in 2021 were in the North West, Wales, Yorkshire and The Humber, West Midlands and North East.

Newly built homes were, on average, less affordable than existing “second-hand” properties. In 2021, prices of new-build homes in England were 10.3 times the median annual earnings of full-time employees.

Here is how house price affordability has fallen in Yorkshire local authority areas between 1997 to 2021. The figures refer to the number of yearly average salaries needed to buy the average home 25 years ago compared to the cost at the end of last year, 2021.

Barnsley 2.5 now 5.1; Bradford 3 now 5.4; Calderdale 2.7 now 5.9; Hull 2.2 now 4.3; Craven 4.3 now 8.2; Doncaster 2.6 now 5.6; East Riding 3.3 now 7.2; Hambleton 4.9 now 9.7; Harrogate 4.5 now 10.9; Kirklees 3 now 6.6; Leeds 3.4 now 7.1; Richmondshire 4.2 now 8.5; Rotherham 2.7 now 5.7; Ryedale 4.9 now 9.5 ; Scarborough 4.1 now 7; Selby 3.5 now 7.1; Sheffield 2.8 now 6.1; Wakefield 2.9 now 5.9; York 3.7 now 8.4.