This charts shows a 30+ year history of the ratio of average UK house price to average UK earnings and of the ratio of the repayment mortgage costs of the average house price at the prevailing bank base rate to earnings.
The two ratios imply significantly different conclusions as to the current level of house price affordability.
But neither ratio can really provide a full picture.
House price "corrections" are associated with increasing interest rates.
However, it is not clear that this relationship is predictive.
Interest rates continue rising after house price growth has peaked
Sources :
House price data : Nationwide UK House price data.
Earnings : ONS - Index of UK earnings.
Interest Rates : Bank of England Base Rates