Would-be homeowners in parts of the North East may need to borrow more than 11 times the average income to be able to afford a house - see how your neighbourhood compares.
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 home ownership can be in some areas. Figures from the 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 the North East, that ratio ranged from 6.5 times average incomes in Northumberland (up from 4.4 times in 2003), to 4.4 times average incomes in County Durham (up from 3.3 times in 2003). 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.
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 widget below.
In the luxury Darras Hall area of Northumberland, the average family would need to borrow 11.4 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 £43,545 a year, the average house sold for a whopping £495,000 in the year to September 2020.
10 most expensive neighbourhoods in the North East
| Local Authority | Neighbourhood | Link to map | Average income | Average house price | Difference |
Northumberland |
Darras Hall, Stamfordham and Heddon |
http://statistics.data.gov.uk/id/statistical-geography/E02005726 |
£43,545 |
£495,000 |
11.4 |
Northumberland |
Longhorsley, Hepscott and Capheaton |
http://statistics.data.gov.uk/id/statistical-geography/E02005722 |
£41,053 |
£396,248 |
9.7 |
Newcastle upon Tyne |
Woolsington and Airport |
http://statistics.data.gov.uk/id/statistical-geography/E02001711 |
£27,188 |
£262,000 |
9.6 |
Newcastle upon Tyne |
Nunsmoor |
http://statistics.data.gov.uk/id/statistical-geography/E02001729 |
£23,072 |
£218,780 |
9.5 |
Northumberland |
Ponteland |
http://statistics.data.gov.uk/id/statistical-geography/E02005725 |
£38,129 |
£361,248 |
9.5 |
Northumberland |
Stocksfield, Riding Mill and Corbridge |
http://statistics.data.gov.uk/id/statistical-geography/E02005732 |
£39,862 |
£368,000 |
9.2 |
Newcastle upon Tyne |
Coxlodge and West Gosforth |
http://statistics.data.gov.uk/id/statistical-geography/E02001713 |
£39,753 |
£360,000 |
9.1 |
North Tyneside |
Whitley Bay North |
http://statistics.data.gov.uk/id/statistical-geography/E02001738 |
£38,670 |
£350,995 |
9.1 |
North Tyneside |
Whitley Sands |
http://statistics.data.gov.uk/id/statistical-geography/E02001740 |
£43,436 |
£375,000 |
8.6 |
Northumberland |
Longhoughton and Alnmouth |
http://statistics.data.gov.uk/id/statistical-geography/E02005702 |
£33,579 |
£285,995 |
8.5 |
Meanwhile, a house in one neighbourhood in the Ayresome area of Middlesbrough - the most affordable in the whole of England and Wales - could be bought for just 1.7 times the average household income.
The 10 most affordable neighbourhoods in the North East
There, the average net household income is an estimated £26,647 a year, and the median house price is just £45,000.
Since 2014, the Bank of England has set the maximum ratio of loans as 4.5 times income. Only 15% of all mortgages are allowed to exceed this.
Based on this level of maximum borrowing, only 57% of neighbourhoods across the North East 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.
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. Overall, just 12% of neighbourhoods across England and Wales would be affordable to the average household, based on maximum borrowing levels of 4.5 times income.
