HOMES in Bournemouth, Christchurch and Poole are at their least affordable since at least 2003, new figures show.
The analysis shows that the average house price in Bournemouth, Christchurch and Poole is now £325,000, while the average annual salary sits at £28,755 – meaning house hunters need 11.3 times their wage to buy a home.
This is the highest ratio recorded since the ONS began analysing the issue in 2003. In 2020, the figure stood at 9.8.
Each year, the Office for National Statistics calculates housing affordability by comparing the median house price in a local authority area to the median full-time annual income of people who live there.
The higher the ratio is, the less affordable homes are to buy.
The median – the middle number in a series – is used instead of the mean average to ensure the figures are not skewed by extreme highs or lows.
In 2021, homes in Bournemouth, Christchurch and Poole became less affordable as wages decreased by 2% and house prices rose by 14%.
Polly Neate, chief executive of housing charity Shelter, says the blame for worsening affordability lies with a "huge decline" in affordable social homes, paired with less housebuilding.
"House prices have been pushed higher by policies that have given some people greater purchasing power, like Help to Buy or the recent stamp duty cut. These policies coupled with a lack of supply means homeownership is now out of reach for most people on modest incomes."
“Many families are really struggling now that other bills are skyrocketing too - forced to choose between heating, eating or paying their rent."
Last year, England saw the most severe decrease in affordability since 2003 — full-time workers now have to spend around 9.1 times their annual salary to buy a home, up from 7.9 in 2020.
Tom Bill, head of UK residential research at estate agency Knight Frank, said that while house prices have risen significantly over the pandemic he expects growth to slow over the next year.
Mr Bill said: “For the moment, the cost of living is dominating people's thinking, but demand for homes remains sky high. Supply is normalising after Covid-19 and upwards pressure on prices may begin to moderate — double digit house price growth is likely to return to single digits by the end of this year.”
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