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Average house prices are still unaffordable for the typical earner, the UK’s largest building society has said.

Despite wages rising above the rate of inflation in recent months and house prices falling from the record high of summer 2022, “housing affordability is still stretched”, Nationwide said.

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A greater proportion of take-home pay is going on mortgage bills, according to the lender’s house price index.

Someone earning the average UK income seeking to buy their first home with a deposit worth 20% of the asking price will have a monthly mortgage bill of 37% of their end pay packet.

It’s above the long-standing average of 30%.

The mortgages affect

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While people have been typically earning more and house prices are 3% lower than the all-time high two years ago, rising mortgage costs have made unaffordability worse.

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Lloyds Banking Group chief executive Charlie Nunn said the era of ultra low interest rates is over. 

With high interest rates – raised to 5.25% by the Bank of England to bring down inflation – have come more expensive mortgage costs.

According to Nationwide, the interest rate on a five-year fixed-rate deal for a borrower with a 25% deposit was 1.3% in late 2021. That has soared and is now around 4.7%.

Latest official figures showed basic pay grew 6% in the three months to April, while inflation – the rate of price rises – was 2.3% in the same month. But data from living-standards thinktank the Resolution Foundation said weekly wages have increased by just £16 in 14 years when inflation is factored in.

Compounding affordability problems is the fact UK house prices are back on the rise and were 1.5% more last month compared to June 2023.

Fewer mortgages, more cash

There have been fewer house-buying transactions over the past year, Nationwide added.

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The total number of transactions is down by roughly 15% compared to the pre-pandemic year of 2019.

Higher borrowing costs have meant transactions involving a mortgage are down even more, nearly 25%.

Cash transactions, however, are up 5% on pre-pandemic levels.

Figures released by the Bank of England on Monday morning showed mortgage approvals continued to fall.

House sales are likely to fall as the number of mortgages approved dropped to 60,000 in May from 60,800 in April.

Would-be buyers borrowed half the amount of money to purchase a home, the Bank said, £1.2bn was loaned in May, down from £2.2bn in April.

The same data showed that personal lending, such as credit card debt and personal loans, grew. It suggests increased consumer demand.

The region with the fastest house price growth was Northern Ireland at 4.1% across the three months of April to June, while it became 1.8% cheaper to buy a house in East Anglia over the year, according to Nationwide figures.

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‘Nurse’ stabbed at hospital A&E department – man arrested on suspicion of attempted murder

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'Nurse' stabbed at hospital A&E department - man arrested on suspicion of attempted murder

A woman has suffered life-changing injuries after being stabbed by a member of the public at the accident and emergency department where she was working.

The victim – believed to be a nurse in her 50s – was attacked at Royal Oldham Hospital in Greater Manchester, where she is now being treated.

It is understood she was injured with a bladed article or a sharp instrument – and not by a knife.

Officers were called at 11.30pm on Saturday.

A 37-year-old man is in custody after being “swiftly arrested at the scene” on suspicion of attempted murder, Greater Manchester Police said.

Detectives are not looking for anyone else in connection with the incident and say there is no threat to the wider public.

Jim McMahon, the Labour MP for the area, described it as a “senseless attack”.

He posted on Facebook: “We are all shocked at the senseless attack on a nurse in the A&E department of the Royal Oldham Hospital.

“Our thoughts are with the nurse, family and friends as we wish a full recovery.”

Detective Sergeant Craig Roters said it was a “serious incident which has left a woman in a critical condition”.

The victim’s family and colleagues will be supported, he added.

The local community can expect to see an “increase in police presence” while enquiries are carried out, Mr Roters said.

“We know that news of this nature will come as a shock, and if you have any concerns or anything you would like to share, please speak to [officers].”

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Kemi Badenoch calls on Sir Keir Starmer to sack Tulip Siddiq over property allegations

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Kemi Badenoch calls on Sir Keir Starmer to sack Tulip Siddiq over property allegations

Conservative Party leader Kemi Badenoch has called on Sir Keir Starmer to sack Treasury minister Tulip Siddiq over allegations she lived in properties linked to allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh.

It comes after the current Bangladeshi leader, Muhammad Yunus, said London properties used by Ms Siddiq should be investigated.

He told the Sunday Times the properties should be handed back to his government if they were acquired through “plain robbery”.

Tory leader Ms Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.

“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.

“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”

Ms Siddiq insists she has “done nothing wrong”.

Her aunt was ousted from office in August following an uprising against her 20-year leadership and fled to India.

Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.

Kemi Badenoch
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Tory leader Kemi Badenoch has called on Sir Keir to sack the minister

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As economic secretary to the Treasury, Ms Siddiq is responsible for policy on both the City and tackling corruption.

She referred herself to the prime minister’s ethics watchdog on Monday following the reports about the properties.

On the same day, the prime minister said: “Tulip Siddiq has acted entirely properly by referring herself to the independent adviser, as she’s now done, and that’s why we brought into being the new code.

“It’s to allow ministers to ask the adviser to establish the facts, and yes, I’ve got confidence in her, and that’s the process that will now be happening.”

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Search area widened for missing sisters in Aberdeen

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Search area widened for missing sisters in Aberdeen

Police in Aberdeen have widened the search area for two sisters who disappeared four days ago in the city.

Eliza and Henrietta Huszti, both 32, were last seen on CCTV on Market Street after leaving their home on Tuesday at around 2.12am.

The sisters – who are part of a set of triplets and originally from Hungary – crossed the Victoria Bridge to the Torry area and turned right on to a footpath next to the River Dee.

Eliza and Henrietta Huszti who were last seen on CCTV in Market Street.
Pic: Police Scotland/PA
Image:
Eliza and Henrietta Huszti were last seen on CCTV in Market Street. Pic: Police Scotland/PA

They headed in the direction of Aberdeen Boat Club but officers said there is no evidence to suggest the missing women left the immediate area.

Specialist search teams, police dogs and a marine unit have been trying to trace the pair.

SN screengrab aberdeen city showing Victoria Bridge (looking north towards market street) re: missing sisters Eliza and Henrietta Huszti
Ingest_23_NM23_RGR_15_SAF_MISSING_SISTERS_ABERDEEN_GVS_ABERDEEN
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The sisters crossed Victoria Bridge before walking along a footpath next to the River Dee

SN screengrab aberdeen city showing boat club. A potential location of missing sisters Eliza and Henrietta Huszti
Ingest_23_NM23_RGR_15_SAF_MISSING_SISTERS_ABERDEEN_GVS_ABERDEEN
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The pair were heading in the direction of Aberdeen Boat Club on the south side of the River Dee

Further searches are being carried out towards the Port of Aberdeen’s South Harbour and Duthie Park.

Police Scotland said it is liaising with authorities in Hungary to support the relatives of the two sisters.

datawrapper map of aberdeen city showing location of police searches for missing sisters Eliza and Henrietta Huszti

Chief Inspector Darren Bruce said: “Eliza and Henrietta’s family are understandably extremely worried about them and we are working tirelessly to find them.

“We are seriously concerned about them and have significant resources dedicated to the inquiry.”

The sisters, from Aberdeen city centre, are described as slim with long brown hair.

Henrietta  Huszti who along with her sister, Eliza, were last seen on CCTV in Market Street.
Pic: Police Scotland/PA
Image:
Henrietta Huszti. Pic: Police Scotland

Eliza Huszti.
Pic: Police Scotland/PA
Image:
Eliza Huszti. Pic: Police Scotland

Officers have requested businesses in and around the South Esplanade and Menzies Road area to review their CCTV footage for the early morning of Tuesday 7 January.

Police added they are keen to hear from anyone with dashcam footage from that time.

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