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BBC Onepolitics show


Last Updated: Friday, 13 July 2007, 17:09 GMT 18:09 UK
House price chasm

Nadine Budych
Teacher Nadine Budych and her husband bought a three-bedroom house as their first purchase

This week, Gordon Brown declared that affordable housing will be a priority for his government.

Paola Buonadonna has been to Germany to see why getting on the housing ladder is easier there than it is for those aspiring to do the same in Britain.

We have obtained figures comparing average earnings and house prices in both countries, and the difference in affordability is significant.

Average annual earnings in Germany and Britain are similar: 20,981 (euro30,984) in Germany compared to 22,950 in the UK.

Nadine Budych's house
A house that many in the UK would love to buy

But the difference in house prices is much larger.

House prices in Germany are, on average, three quarters of those in Britain.

The average house price in Germany is 148,971 (euro220,000), whereas in Britain it is 196,893.

Average house price Average earnings(per annum)

UK 196,893 (Halifax: May 2007) 22,950 (ONS, 2006 Annual Survey of Hours and Earnings)

Germany 148,971 (euro220,000)(VDP: Association of German Pfandbrief Banks) 20,981 (euro30,984 ) (European Foundation for the Improvement of Living and Working Conditions, 2006)

Statistics notes: For the tax year ending 5 April 2006, the median gross annual earnings for full-time men were 25,800and 20,100 for full-time women: average = 22,950 (ONS, First Release: 2006 Annual Survey of Hours and Earnings)

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