Would-be homeowners in parts of Greater Manchester may need to borrow nearly 17 TIMES the average income to be able to afford a house. With homes across the country now almost twice as unaffordable as they were at the turn of the century, exclusive analysis has revealed just how out of reach homeownership can be in some areas.
Hale Barns in Trafford has been named as the most expensive area to live in our region, while an area of Leigh in Wigan has shown to be the most affordable neighbourhood. Figures from the Office for National Statistics (ONS) show that in the year to September 2021, the average house in England and Wales cost around 8.9 times the average income - up from 5.1 times in the year to September 2002.
Within Greater Manchester, that ratio ranged from 9.3 times average incomes in Trafford (up from 5.2 times), to 5.1 times average incomes in Wigan (up from 3.0 times). These figures look at the income of every household member, plus any income from benefits, before things like tax, national insurance and pension payments are taken into account.
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Comparison of separate figures at a neighbourhood level (areas of about 7,200 people), using net household incomes that take these payments into account, shows the true reality of getting on the property ladder can be even more stark at a local level.
You can see the figures for your neighbourhood using our postcode search interactive below.
In one neighbourhood in the Hale Barns area of Trafford, the average family would need to borrow 16.6 times the local average yearly income to afford a home. It makes it the least affordable area in the region.
While the average net household income in the neighbourhood is an estimated £42,570 a year, the average house sold for a whopping £705,500 in the year to September 2020. Meanwhile, a house in one neighbourhood in the Leigh Central area of Wigan - the most affordable in Greater Manchester - could be bought for just 3.1 times the average household income.
There, the average net household income is an estimated £29,138 a year, and the median house price is just £90,000. Since 2014, the Bank of England has set the maximum ratio of loans as 4.5 times income.
Only 15 per cent of all mortgages are allowed to exceed this. Based on this level of maximum borrowing, only 17 per cent of neighbourhoods across Greater Manchester are actually affordable to those living there, on average.
However, it’s important to note that the figures don’t include any deposit that a family might have saved.
The 10 most expensive neighbourhoods in Greater Manchester
Local Authority // Neighbourhood // Average income // Average house price // Difference
Trafford // Hale Barns // £42,570 // £705,500 // 16.6
Trafford // Bowdon // £41,487 // £575,000 // 13.9
Stockport // Bramhall South and Woodford // £36,829 // £501,000 // 13.6
Salford // Broughton Park // £28,272 // £375,000 // 13.3
Trafford // Altrincham West, Dunham and Warburton // £38,887 // £463,000 // 11.9
Trafford // Hale // £49,177 // £584,000 // 11.9
Stockport // Gatley South and Cheadle West // £34,662 // £400,000 // 11.5
Stockport // Bramhall North East // £38,887 // £422,000 // 10.9
Trafford // Timperley South // £38,670 // £423,000 // 10.9
Trafford // Ashton upon Mersey South // £40,620 // £430,000 // 10.6
The 10 most affordable neighbourhoods in Greater Manchester
Local Authority // Neighbourhood // Average income // Average house price // Difference
Wigan // Leigh Central // £29,138 // £90,000 // 3.1
Bolton // Halliwell and Brownlow Fold // £26,863 // £86,500 // 3.2
Bolton // Burnden and Great Lever // £29,246 // £95,000 // 3.2
Bolton // Rumworth South // £30,005 // £95,000 // 3.2
Oldham // Salem // £31,304 // £101,000 // 3.2
Oldham // Alexandra Park // £27,080 // £87,000 // 3.2
Rochdale // Central Rochdale and Mandale Park // £28,380 // £90,000 // 3.2
Oldham // Oldham Town North // £27,838 // £91,000 // 3.3
Rochdale // Wardleworth and Newbold Brow // £28,921 // £96,500 // 3.3
Bolton // Gilnow and Victory // £27,730 // £94,000 // 3.4
Across England and Wales, the least affordable area to buy a house is in a neighbourhood in the Knightsbridge, Belgravia and Hyde Park area of Westminster, London. The average house price there, at £2.5 million, is 70.8 times the average income.
Outside of London, the most expensive neighbourhood is in the Oxshott and Stoke D'Abernon area of Elmbridge, Surrey, where homes typically sell for £1.2 million - 25.0 times the average income. Meanwhile, the most affordable place to buy a house is in a neighbourhood in the Ayresome area of Middlesbrough.
Here, the average cost of a property in the year to September 2021 was £45,000. That’s just 1.7 times higher than the average income.
Overall, just 12 per cent of neighbourhoods across England and Wales would be affordable to the average household, based on maximum borrowing levels of 4.5 times income.
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