Great bit of research there. Really just a re-hashing of data that has been out there for yonks, but great to get a bit of PR and shock the people of Britain. Interesting to delve into the detail there. Of course, as with most things in economics, it’s all about supply and demand! People would rather live in the south east of England than in Bradford or Hull, so they are more willing to stretch their incomes and get more into debt in order to make their posh home counties dreams come true. Also, factors to consider would be the number of properties bought for cash rather than mortgage, because cash buyers are enabled by their wealth rather than their income which is the key variable for mortgage affordability. The difference between Brighton and London seems unusual at first, but this survey is based on average income. It may be that when the same test is performed on disposable income rather than nominal income, London is in fact the top in terms of income multiple. Brighton is well know for being home to many couples that chose to pursue an alternative lifestyle and their disproportionately large number of childless families may lead to a higher level of disposable income than in other areas of the county.
Photo credit: Amro