Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

The average transaction price of new housing in Europe was the highest in Norway, whereas existing homes were the most expensive in Austria. Since there is no central body that collects and tracks transaction activity or house prices across the whole continent or the European Union, not all countries are included. To compile the ranking, the source weighed the transaction prices of residential properties in the most important cities in each country based on data from their national offices. For example, in Germany, the cities included were Munich, Hamburg, Frankfurt, and Berlin. House prices have been soaring, with Sweden topping the ranking Considering the RHPI of houses in Europe (the price index in real terms, which measures price changes of single-family properties adjusted for the impact of inflation), however, the picture changes. Sweden, Luxembourg and Norway top this ranking, meaning residential property prices have surged the most in these countries. Real values were calculated using the so-called Personal Consumption Expenditure Deflator (PCE), This PCE uses both consumer prices as well as consumer expenditures, like medical and health care expenses paid by employers. It is meant to show how expensive housing is compared to the way of living in a country. Home ownership highest in Eastern Europe The home ownership rate in Europe varied from country to country. In 2020, roughly half of all homes in Germany were owner-occupied whereas home ownership was at nearly ** percent in Romania or around ** percent in Slovakia and Lithuania. These numbers were considerably higher than in France or Italy, where homeowners made up ** percent and ** percent of their respective populations.For more information on the topic of property in Europe, visit the following pages as a starting point for your research: real estate investments in Europe and residential real estate in Europe.

This table shows the average House Price/Earnings ratio, which is an important indicator of housing affordability. Ratios are calculated by dividing house price by the median earnings of a borough.

The Annual Survey of Hours and Earnings (ASHE) is based on a 1 per cent sample of employee jobs. Information on earnings and hours is obtained in confidence from employers. It does not cover the self-employed nor does it cover employees not paid during the reference period. Information is as at April each year. The statistics used are workplace based full-time individual earnings.

Pre-2013 Land Registry housing data are for the first half of the year only, so that they are comparable to the ASHE data which are as at April. This is no longer the case from 2013 onwards as this data uses house price data from the ONS House Price Statistics for Small Areas statistical release. Prior to 2006 data are not available for Inner and Outer London.

The lowest 25 per cent of prices are below the lower quartile; the highest 75 per cent are above the lower quartile.
The "lower quartile" property price/income is determined by ranking all property prices/incomes in ascending order.
The 'median' property price/income is determined by ranking all property prices/incomes in ascending order. The point at which one half of the values are above and one half are below is the median.

Regional data has not been published by DCLG since 2012. Data for regions has been calculated by the GLA. Data since 2014 has been calculated by the GLA using Land Registry house prices and ONS Earnings data.

Link to DCLG Live Tables

An interactive map showing the affordability ratios by local authority for 2013, 2014 and 2015 is also available.

The house price to income index in Europe declined in almost all European countries in 2023, indicating that income grew faster than house prices. Portugal, Luxembourg, and the Netherlands led the house price to income index ranking in 2023, with values exceeding *** index points. Romania, Bulgaria, and Finland were on the other side of the spectrum, with less than 100 index points. The house price to income ratio is an indicator for the development of housing affordability across OECD countries and is calculated as the nominal house prices divided by nominal disposable income per head, with 2015 chosen as a base year. A ratio higher than 100 means that the nominal house price growth since 2015 has outpaced the nominal disposable income growth, and housing is therefore comparatively less affordable. In 2023, the OECD average stood at ***** index points.

FOCUSONLONDON2011: HOUSING:AGROWINGCITY

With the highest average incomes in the country but the least space to grow, demand for housing in London has long outstripped supply, resulting in higher housing costs and rising levels of overcrowding. The pressures of housing demand in London have grown in recent years, in part due to fewer people leaving London to buy homes in other regions. But while new supply during the recession held up better in London than in other regions, it needs to increase significantly in order to meet housing needs and reduce housing costs to more affordable levels.

This edition of Focus on London authored by James Gleeson in the Housing Unit looks at housing trends in London, from the demand/supply imbalance to the consequences for affordability and housing need.

REPORT:

Read the report in PDF format.

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PRESENTATION:

How much pressure is London’s popularity putting on housing provision in the capital? This interactive presentation looks at the effect on housing pressure of demographic changes, and recent new housing supply, shown by trends in overcrowding and house prices. Click on the start button at the bottom of the slide to access.

View Focus on London - Housing: A Growing City on Prezi

HISTOGRAM:

This histogram shows a selection of borough data and helps show areas that are similar to one another by each indicator.

Histogram

MOTION CHART:

This motion chart shows how the relationship, between key housing related indicators at borough level, changes over time.

Motion Chart

MAP:

These interactive borough maps help to geographically present a range of housing data within London, as well as presenting trend data where available.

MAP

DATA:

All the data contained within the Housing: A Growing City report as well as the data used to create the charts and maps can be accessed in this spreadsheet.

FACTS:

Some interesting facts from the data…

● Five boroughs with the highest proportion of households that have lived at their address for less than 12 months in 2009/10:

1. Westminster – 19 per cent
2. Wandsworth – 17 per cent
3. Camden – 16 per cent
4. Lambeth – 14 per cent
5. Southwark – 13 per cent

-31. Harrow – 6 per cent

-32. Havering – 5 per cent

● Five boroughs with the highest percentage point increase between 2004 and 2009 of households in the ‘private rented’ sector:

1. Newham – 17 per cent
2. Greenwich – 11 per cent
3. Enfield – 10 per cent
4. Camden – 9 per cent
5. Harrow – 8 per cent

-32. Islington – 1 per cent

-33. Bexley – 1 per cent

● Five boroughs with the highest percentage difference in median house prices between 2007 Q4 and 2010 Q4:

1. Kensington & Chelsea – 29 per cent
2. Westminster – 19 per cent
3. Camden – 15 per cent
4. Islington – 14 per cent
5. Southwark – 10 per cent

-31. Newham – down 9 per cent

-32. Barking & D’ham – down 9 per cent

The 'Climate Just' Map Tool shows the geography of England’s vulnerability to climate change at a neighbourhood scale.

The Climate Just Map Tool shows which places may be most disadvantaged through climate impacts. It aims to raise awareness about how social vulnerability combined with exposure to hazards, like flooding and heat, may lead to uneven impacts in different neighbourhoods, causing climate disadvantage.

Climate Just Map Tool includes maps on:

• Flooding (river/coastal and surface water)
• Heat
• Fuel poverty.

The flood and heat analysis for England is based on an assessment of social vulnerability in 2011 carried out by the University of Manchester. This has been combined with national datasets on exposure to flooding, using Environment Agency data, and exposure to heat, using UKCP09 data.

Data is available at Middle Super Output Area (MSOA) level across England. Summaries of numbers of MSOAs are shown in the file named Climate Just-LA_summaries_vulnerability_disadvantage_Dec2014.xls

Indicators include:

Climate Just-Flood disadvantage_2011_Dec2014.xlsx

Fluvial flood disadvantage index
Pluvial flood disadvantage index (1 in 30 years)
Pluvial flood disadvantage index (1 in 100 years)
Pluvial flood disadvantage index (1 in 1000 years)

Climate Just-Flood_hazard_exposure_2011_Dec2014.xlsx

Percentage of area at moderate and significant risk of fluvial flooding
Percentage of area at risk of surface water flooding (1 in 30 years)
Percentage of area at risk of surface water flooding (1 in 100 years)
Percentage of area at risk of surface water flooding (1 in 1000 years)

Climate Just-SSVI_indices_2011_Dec2014.xlsx

Sensitivity - flood and heat
Ability to prepare - flood
Ability to respond - flood
Ability to recover - flood
Enhanced exposure - flood
Ability to prepare - heat
Ability to respond - heat
Ability to recover - heat
Enhanced exposure - heat
Socio-spatial vulnerability index - flood
Socio-spatial vulnerability index - heat

Climate Just-SSVI_indicators_2011_Dec2014.xlsx

% children < 5 years old
% people > 75 years old
% people with long term ill-health/disability (activities limited a little or a lot)
% households with at least one person with long term ill-health/disability (activities limited a little or a lot)
% unemployed
% in low income occupations (routine & semi-routine)
% long term unemployed / never worked
% households with no adults in employment and dependent children
Average weekly household net income estimate (equivalised after housing costs) (Pounds)
% all pensioner households
% households rented from social landlords
% households rented from private landlords
% born outside UK and Ireland
Flood experience (% area associated with past events)
Insurance availability (% area with 1 in 75 chance of flooding)
% people with % unemployed
% in low income occupations (routine & semi-routine)
% long term unemployed / never worked
% households with no adults in employment and dependent children
Average weekly household net income estimate (equivalised after housing costs) (Pounds)
% all pensioner households
% born outside UK and Ireland
Flood experience (% area associated with past events)
Insurance availability (% area with 1 in 75 chance of flooding)
% single pensioner households
% lone parent household with dependent children
% people who do not provide unpaid care
% disabled (activities limited a lot)
% households with no car
Crime score (IMD)
% area not road
Density of retail units (count /km2)
% change in number of local VAT-based units
% people with % not home workers
% unemployed
% in low income occupations (routine & semi-routine)
% long term unemployed / never worked
% households with no adults in employment and dependent children
Average weekly household net income estimate (Pounds)
% all pensioner households
% born outside UK and Ireland
Insurance availability (% area with 1 in 75 chance of flooding)
% single pensioner households
% lone parent household with dependent children
% people who do not provide unpaid care
% disabled (activities limited a lot)
% households with no car
Travel time to nearest GP by walk/public transport (mins - representative time)
% of at risk population (no car) outside of 15 minutes by walk/public transport to nearest GP
Number of GPs within 15 minutes by walk/public transport
Number of GPs within 15 minutes by car
Travel time to nearest hospital by walk/public transport (mins - representative time)
Travel time to nearest hospital by car (mins - representative time)
% of at risk population outside of 30 minutes by walk/PT to nearest hospital
Number of hospitals within 30 minutes by walk/public transport
Number of hospitals within 30 minutes by car
% people with % not home workers
Change in median house price 2004-09 (Pounds)
% area not green space
Area of domestic buildings per area of domestic gardens (m2 per m2)
% area not blue space
Distance to coast (m)
Elevation (m)
% households with the lowest floor level: Basement or semi-basement
% households with the lowest floor level: ground floor
% households with the lowest floor level: fifth floor or higher