Average house prices in the Isle of Man are just over seven times the average salary, government figures have revealed.

Affordability ratios show the average house price was 7.62 times the average salary last year.

This is according to data from the Isle of Man Housing Market Review 2020 released by government this week.

The report, containing information on the Manx housing market, was published on Monday.

Compiled by the Economic Affairs division of the Cabinet Office, the review contained a range of data on average house and flat prices, market distribution, trends, housing stock, lending and affordability, and how many transactions took place in different sectors.

The average salary was £37,824 per annum and £788 weekly, according to the recent Isle of Man in Numbers Report.

The affordability ratio figure has been on the rise since 2017 after experiencing a drop from the average house price being 7.54 times the average salary in 2016.

In 2020, the average house price was 7.62 times average annual earnings, an increase from 2019 when it was 7.37.

The median figures for this show the median house price is just under nine times median earnings with 8.89 in 2020.

25 AND UNDER

For those 25-years-old and under wanting to buy a house in the island, on average they will need just under 10 times their salary to afford it.

The government’s figures show the median house price to the median salary of a person under 25-years-old was 9.81 last year.

This has been increasing since 2018 when it was 9.17 times annual earnings.

However, in comparison with 2011 when this was first monitored, there has been a significant drop.

In 2011, the average house price was 12.83 times a 25-year-old’s median salary.

Over the longer term, house prices are higher relative to earnings than they were during the 1990s. The report said that while the earnings ratio had improved since 2011, ’home ownership will remain difficult’ for young people.

NUMBER OF PROPERTIES SOLD

Meanwhile, in 2019 and 2020 there has been a shift in a proportion of houses being sold.

The report said: ’[There has been] a significant increase in the number of properties being sold in the £250,000 to £500,000 category, accounting for 51% of house sales.

’Property sales in the higher brackets of over £750,000 have also increased marginally, accounting for 4% of sales in 2020 compared with 3% in 2019.’

AVERAGE PROPERTY PRICE

The average price of a property sold as recorded in the Isle of Man House Price Index was £285,064 in 2020.

That was an increase of 7.2% over the calendar year.

Separate data was compiled for both house and flat prices and transactions.

The average house price was £313,036 in 2020 which was an increase of 7.4% compared with the year before.

The average flat price in 2020 was £153,563 which increased by 0.7% over the year.

Most of the data was provided by the Land Registry and the 2016 and 2011 censuses.