New analysis has revealed that the average house price in England is now nearly eight times the average wage.

The Local Government Association (LGA) found that in 2000, the average house price was 3.96 the average income. This increased considerably last year to 7.72 times the average wage packet.

In London, the average house is now almost 12 times the average salary. The North East has the closest gap between house prices and wages, but homes are still five times the average income.

The LGA is calling for councils to keep 100% of their receipts from sales under Right to Buy, and for restrictions of borrowing to be lifted.

Cllr Martin Tett, the LGA’s housing spokesman, said: ‘Councils are doing all they can to encourage housebuilding, by approving nine in 10 planning applications, but the fact is we’re hamstrung by restrictions on our ability to borrow to build. These must be lifted, so we can invest in the new homes our communities need.

‘We also need to be able to keep 100% of the receipts from homes we sell off under Right to Buy. Every penny is needed if we’re to trigger that renaissance in council house building that we need to help deliver genuinely affordable homes for our communities.’

Laura Sharman

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