Homebuyers in Birmingham are getting 49% less living space for their money than they did a decade ago, according to new analysis of Rightmove, Land Registry and EPC data by Post Office Life Insurance.
With average house prices at almost £300,000, buyers in Birmingham could have purchased around 189 square metres for that budget in 2016. Today, the same budget buys just 96 square metres.
That represents 93 square metres of space lost over ten years, the equivalent of a three-bedroom, two-storey family home disappearing from what buyers can afford.
House prices outpace wage growth
House prices have surged far beyond wage growth, with prices rising by more than £60,000 since the pandemic, further reducing the amount of living space buyers can afford.
Even with average earnings in the city at £30,180, UK house prices remain near historic highs, so buyers are being forced to accept significantly smaller homes.
Homes that once comfortably accommodated families are now overcrowded, often meaning bedrooms must be shared.
Impact on working from home and city exodus
A quarter (27%) of people working from home do so at the kitchen table, as they cannot afford a separate home office, while others are leaving the city altogether to find more space in rural areas.
A spokesperson at Post Office added: “Cities experiencing strong growth are also seeing buyers sacrifice more living space than they might expect.
“When rising housing costs reduce both physical space and financial headroom, households can be left more exposed if circumstances change.
“That’s why financial protection is becoming an increasingly important consideration for people stretching their budgets to live in high-demand areas.”
