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House prices and affordability

Summary
Herefordshire is the worst area within the West Midlands region for housing affordability, where house prices at the lower end of the housing market are 8.6 times higher than lower quartile annual earnings. Provision of subsidised housing is therefore a priority for Herefordshire that needs to be addressed through partnership working between Herefordshire Council and Registered Providers.

Property prices

The chart shows how Herefordshire house prices have changed between 1999 and 2016, as compared to the West Midlands and England & Wales.
Averagepropertprices (1)
Source: Ratio of house price to residence-based earnings (lower quartile and median). Office for National Statistics  © Crown Copyright 2017

Affordability

The preferred measure for house price affordability is the ratio of lower quartile house price to lower quartile earnings. For 2016, the ratio for Herefordshire was 8.6, that is, for those on lower quartile earnings, a house at the bottom end of the market would cost them 8.6 times their annual earnings.

The table shows, that in 2016, Herefordshire had the worst affordability ratio out of the 14 West Midlands Authorities (unitaries, counties and metropolitan boroughs) and neighbouring English authorities.

Area

Affordability ratio (2016)

Stoke-on-Trent UA 4.0
Wolverhampton 5.4
Sandwell 5.6
Birmingham 5.8
Walsall 5.9
Telford and Wrekin UA 6.0
Coventry 6.1
Dudley 6.2
West Midlands 6.5
Staffordshire 6.7
England & Wales 7.0
Warwickshire 7.8
Shropshire UA 8.1
Solihull 8.4
Worcestershire 8.5
Herefordshire, County of UA 8.6

Source: Ratio of house price to residence-based earnings (lower quartile and median). Office for National Statistics  © Crown Copyright 2017


Over the previous decade, Herefordshire’s affordability ratio has been consistently higher than those for both the West Midlands and England as a whole. The county’s affordability ratio increased at a greater rate than regionally and nationally during most of the previous decade, reaching a peak of 9.7 in 2007.Affordabilityratiochart
Source: Ratio of house price to residence-based earnings (lower quartile and median). Office for National Statistics  © Crown Copyright 2017

Tables & charts

 

Last updated: Friday, May 04, 2018