Reading property: the most exclusive and expensive areas of Berkshire where only the wealthy can live
Potential homeowners in parts of Berkshire would need to borrow nearly 17 times the average income to be able to afford a home.
BerkshireLive’s exclusive analysis of government figures revealed just how unaffordable homes in our area have become.
The analysis works by comparing the average household income in each neighborhood – areas of around 7,200 residents – with the average house prices there.
In a neighborhood in the South Ascot and Sunningdale area of Windsor and Maidenhead, the average family would need to borrow 16.6 times the average local annual income to afford a house.
This makes it the least affordable neighborhood in Berkshire.
While the average household net income in the neighborhood is estimated at £ 46,720 per year, the average house sold for a whopping £ 775,000 in the year through September 2020.
Meanwhile, a house in a neighborhood in the Lower Earley South area of Wokingham – the most affordable in Berkshire – could be bought for 5.3 times the average household income.
There, the average household net income is estimated at £ 57,783 per year and the median house price is only £ 305,000.
You can see how your neighborhood compares by entering your zip code below:
The 10 most exclusive neighborhoods in Berkshire
|District||Average income||Average house price||Difference|
|South Ascot and Sunningdale||£ 46,720||£ 775,000||16.6|
|Cockham and Waltham||£ 44,465||£ 587,500||13.2|
|City of Windsor and Eton||£ 39.202||£ 499,990||12.8|
|Kintbury and Boxford||£ 46,506||£ 583,000||12.5|
|Steatley and Pangbourne||£ 52,842||£ 645,000||12.2|
|Ascot and North Ascot East||£ 46,291||£ 565,000||12.2|
|Winkfield and Cranbourne||£ 44,143||£ 537,500||12.2|
|Bray Wick and Holyport||£ 48,654||£ 579,000||11.9|
|Maidenhead East||£ 51,017||£ 602,500||11.8|
|Arborfield and Garrison||£ 43,284||£ 494,950||11.4|
Why no Berkshire neighborhood is affordable for shoppers
Since 2014, the Bank of England has set the maximum loan ratio at 4.5 times income.
Only 15% of all mortgages are allowed to exceed this amount.
Based on this maximum borrowing level, no neighborhood in Berkshire is truly affordable for those who live there.
However, it is important to note that the figures do not include any deposits that a family may have saved.
Prices elsewhere in England and Wales
In England and Wales, the least affordable area to buy a home is in an area of Knightsbridge, Belgravia and Hyde Park in Westminster, London.
The average house price there, of 3.2 million pounds, is 91.7 times the average income.
Outside London, the most expensive area is in the Oxshott and Stoke D’Abernon area of Elmbridge, Surrey, where houses typically sell for £ 1.1million, or 24.2 times income. way.
Meanwhile, the most affordable place to buy a home is in a neighborhood in the Horden area of County Durham, where the average cost of a property for the year through September 2020 was 38,000. £.
It’s just 1.6 times the average income.
Overall, only 17% of neighborhoods in England and Wales would be affordable to the average household, based on a maximum borrowing level of 4.5 times income.
Average income estimates are based on the income of each household member in 2018, including employment income, investment returns and benefits, less taxes, pension contributions and maintenance payments – adjusted for the average increase in earnings observed between 2018 and 2020.