Certain areas of the property market in England and Wales are providing a lifeline to potential homebuyers who are finding it hard to climb the property ladder, according to Wayhome analysis.

The research looked at property affordability across each postcode in England and Wales, comparing the change in the house price to income affordability ratio since interest rates started to rise in December 2021.

The analysis found that across England and Wales as a whole, house prices have risen by 8.5% since December 2021. The average household now requires 7.3 times the average household income of £41,900 to cover the average house price of £305,065, which is a 0.6 increase in the affordability ratio since interest rates started to rise.

However, in many pockets of the property market, house prices have fallen substantially, providing a boost to housing affordability for those looking to buy in those areas. For example, in Gwynedd’s LL46 postcode, the average house price has fallen 32.7% since December 2021, the largest house price slide of all postcodes in England and Wales. 

Today, the average house price sits at 7.3 times the average household income, down from 10.8 times income in December 2021 – a 3.5 drop.

Other areas that have seen significant drops in property values include the SO20 postcode in Hampshire’s Test Valley, which has seen a 22.5% drop in property values, leading to a fall in the housing affordability benchmark from 13.3 times household income in December 2021 to 10.3 today.

However, not all homebuyers are benefiting from the same reduction in housing affordability. In Kensington’s W8 postcode, house prices have climbed by 23.1% since December 2021, with the current average house price of £2m sitting at 29.2 times the average household income in the postcode, up 5.5 from 23.7 in December 2021.

Overall, the research highlights the stark differences in property prices and affordability across different areas of England and Wales, and how some areas are becoming more affordable while others remain out of reach for many homebuyers.

Nigel Purves, co-founder and CEO of Wayhome, commented: “Although the market as a whole has stood fairly firm in the face of increasing interest rates, house prices across many pockets of the market have fallen by quite a margin over the last year or so. 

“While this will come as cause for concern for the nation’s homeowners, it will, at least, be welcomed by the nation’s buyers who are struggling with the sky high cost of homeownership. 

“Of course, it’s important to note that while many buyers will have seen a boost to overall affordability, securing a mortgage in the current climate will come at a greater cost.”