A NEW Study has revealed that Cornwall is experiencing its biggest drop in property sales since 2008.
Researchers at Bird & Co have explored recently released ONS data, examining ONS property sale figures alongside this, the statistics reveal how income and house prices have impacted house sales, if at all.
The analysis of the data from 2003 to 2023 shows that Cornwall has one of the smallest disparities between house price increase and income percentage change, suggesting residents in the area are more likely in theory to be able to afford housing whilst maintaining a good quality of life.
Since 2009, the largest disparity between house price percentage change and income percentage change was in 2020/21 as a result of a drop in employment during the pandemic and an increased demand for houses, ultimately pushing the two factors apart.
This larger disparity could also be due to the government introducing a Stamp Duty holiday in July 2020, which temporarily increased the tax threshold for residential properties, effectively reducing the tax burden for buyers and stimulating market activity.
To get a sense of affordability across all locations in the UK, Bird & Co worked out the percentage change in house prices from September 2003 to September 2023, and the same for income from March 2003 to March 2023, and found the difference between these figures. From this, the areas with the largest and smallest disparity between house price and income growth became apparent.
Alongside Cornwall, the 10 locations with the smallest disparity, and therefore where wage growth is keeping relative pace with house prices, were: Ribble Valley, East Devon, North Kesteven, Wyre Forest, Newcastle upon Tyne, Mid Devon, South Staffordshire, West Lancashire, Blackpool, and Cornwall.
The results show a variety of locations across England and Wales that appear to have higher affordability.
Daniel Chard, partner at Bird & Co, said: “The findings reveal Cornwall as one of the most affordable places to buy a home in the UK, which is encouraging news for prospective buyers in the region.
“This study should inspire those looking to buy a home to consider the long-term relationship between income and house prices to better understand affordability.
“However, it's evident that factors beyond affordability are holding people back from becoming homeowners. Even when house prices and incomes align closely, property sales remain somewhat unaffected.
“This could indicate a lack of suitable housing availability, property value fluctuations, current interest rates, and mortgage availability.
“Personal circumstances, such as job security and long-term financial planning, also play a significant role. We urge anyone looking to buy a home to consider these long-term factors to ensure a better quality of life after purchasing a home.”