This indicator is defined as the ratio of the average house price (detached, semi-detached, terraced, flat/maisonette) in a local authority to the average, gross, full time annual earnings in a local authority.
The purpose of this indicator is to monitor progress towards improving housing opportunities and affordable housing. It measures the relationship between average full time earnings and average house prices within an area and therefore provides an indication of how affordable housing is in that area. The ratio using residence based earnings information measures how affordable housing is for those living in the area, the indicator using workplace earnings information measures how affordable local housing is for those working in the area. The two together provide a picture of the different circumstances of those living or working in an area. Monitored over time this indicator will measure how quickly housing costs are increasing relative to the increase in average earnings. The indicator has limitations as it does not measure the affordability of privately rented or social housing. In addition, it only measures the income of people working full time and excludes part time workers, those who are self-employed and those claiming benefits. Information on those claiming benefits are measured by indicators 1.1, 1.2, 1.3 and 1.6 in the local basket of inequalities indicators. Nevertheless this indicator provides an indication of the overall housing opportunities in an area.
This indicator has been discontinued and so there will be no further updates.
Legacy unique identifier: P01086