New analysis of UK property values has laid bare the stark generational divide when it comes to getting a foot on the property ladder.

Oak Tree Mobility sought to determine the challenges young people are facing in the housing market compared to their parents and grandparents, analysing figures from the House Price Index as well as data on average earnings dating back more than four decades to 1982.

The extent of the challenge facing new buyers is illustrated by the almost 1200% rise in the average price of a home in four decades from December 1982 to the most recent publication of HPI figures in December 2022 - from £22,685 to £294,329.

In this same period, earnings have not kept pace. Oak Tree Mobility calculated average earnings for an adult in 1982 from historic data, showing an average annual salary of £6,583 per year. ONS figures today show the UK average salary now sits at £32,760.

Regional disparities are also stark. Even in the North East, where property prices are the lowest in England at £163,731 on average, buyers need to set aside a full year of earnings for the deposit on a home. Compare that to London, where the average property value is £543,099, and would-be buyers need to set aside almost 40 months’ earnings for the same percentage deposit.