Skip to content

House Price to Earnings Ratio

House price ratios provide an indicator for the affordability of housing, a major expenditure for most residents. Higher ratios indicate more expensive houses relative to earnings. The ratio is calculated by dividing the average value of property by the average annual earnings and relies on survey data for the earnings element and Land Registry sales data for the average house prices.

Line graph shows the trends over time. Use the geography filters to compare different areas and the date filters to change the range. Right click the graph to show underlying data. Click to slide 2 for a map of Devon.

About the data

Average house prices in Devon are, and combined with earnings below the national average this contributes to a house price ratio of 9.4. This figure is in excess of the national average level at 7.9. Some earnings to house price ratios in the Devon districts are the highest in the South West with ratios in both North Devon and South Hams in excess of 10. By way of comparison Plymouth is the lowest at 6.3.

The high house price ratio has an important impact on affordability and standard of living, helping to explain levels of relative poverty within some parts of the county, particularly rural areas where younger people on lower incomes are priced out of the market. Even in areas with high earnings such as South Hams, attractive locations and second homes result in very high levels of affordability. Ensuring Devon can attract and retain young workers is important to make sure we have a sufficiently skilled workforce to meet the needs of the future, especially in the face of a shrinking working age population.

Last Updated: March 2019