House prices fall to 7.3 times average earnings, the lowest ratio since 2015, Lloyds finds

Lloyds analysis published on 2 October puts the average UK home at £299,131, or 7.3 times average annual earnings of £40,790, down from 7.6 times a year ago and the lowest ratio since 2015; for first-time buyers the ratio eased to 5.9 times from 6.1. The improvement comes from pay rising 4.5% a year while prices edged up just 0.5%, rather than from homes getting cheaper. For buyers, the deposit hurdle relative to income is easing, although first-time buyers still spend 34% of monthly income on mortgage payments, unchanged on last year, because higher rates have absorbed the gain. For sellers, it is a sign that prices are becoming more stretchable for incomes, but London at 10.3 times and the South East at 9.1 times remain far less affordable than the North East at 5.0.