Copy article

"These affordability stats are the perfect poster for Broken Britain"

ended 24. March 2025

Data published this morning by the Housing Analysis team at the Office for National Statistics has shown that, in 2024, the median average home in England, at £290,000, cost 7.7 times the median average earnings of a full-time employee (£37,600); and that in Wales, the average home (£201,000) was 5.9 times annual earnings (£34,300).

The report says that affordability in England and Wales in 2024 has returned to its pre-coronavirus (COVID-19) pandemic levels after a sharp increase between 2020 and 2021 (worsening affordability); median house sales prices have increased by 1% since 2021, while average earnings have increased by 20%.

In 2024, 9% of local authorities (LAs) (27) had homes bought for less than five times workers' earnings on average and were therefore deemed affordable; this is the highest proportion since 2015, but well below that at the start of the series in 1997 (88% of areas). Other key findings below. Newspage asked mortgage brokers for their views, bottom.

  • Housing affordability improved in 289 of the 318 LAs in England and Wales (91%) and worsened in 28 (9%) since 2023.
  • The most affordable LAs in 2024 were Blaenau Gwent (with a ratio of 3.8), Burnley (3.9) and Blackpool (3.9); the least affordable was Kensington and Chelsea (27.1, which was about seven times less affordable).
  • Between 2019 and 2024, 4 of the 10 largest increases in affordability ratios (worsening affordability) were in the East Midlands, while the 10 largest decreases in affordability ratios have all occurred in LAs in London.

6 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Andrew Montlake
CEO at Coreco
Affordability has been one of the big issues plaguing potential homeowners over the past few years. While we have started seeing forward-thinking lenders launch innovative products recently, more must be done. Bravo to lenders such as Skipton Building Society, Accord, April Mortgages and Gen H, who have excelled here. While the FCA has been careful to highlight lenders' flexibility in their affordability guidance, it seems many lenders still feel too restrained. It would be great to see historical rental payments regularly used as a guide to affordability while also carefully updating stress testing rules that still see some lenders stressing at 8.5% and beyond. There is also potential to revisit the 15% ceiling on lenders offering income multiples above 4.5 times, especially for smaller lenders who target first-time buyers, who may be disproportionally affected by this. No one wants a return to unstable lending, but there appears to be room for a touch more sensible risk.
Star Quote
Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
These affordability stats are the perfect poster for Broken Britain. When the average house price is 7.7 times the average full time income, it remains a real struggle to get on the housing ladder, or move up it. So few homes are sold by housing associations at under 5 times average income that are deemed affordable, and in reality these are still out of reach of many would-be buyers. Meanwhile, more 4-bed executive homes are being built across the country rather than the truly affordable homes the country needs to resolve this affordability conundrum.
Copy

Editor
Chris Barry
Director at Thomas Legal
Whilst housing affordability is in a dreadful place right now, house prices themselves are actually 23% lower than they were in 2007 when adjusted for inflation. The real issue here is that wages have repeatedly not kept up with house price inflation, aiding the gap between the average wage and the average property price. This tide is slowly turning given wage growth is now outstripping inflation by around a 2% surplus but this will have to be sustained for some time to have a meaningful impact. Borrowing only represents one third of housing stock and the transfer of wealth between baby boomers and first-time buyers will continue to keep house prices rising.
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
The latest ONS figures really lay bare how out of step the housing market is with real-world lending. If the average home in England costs 7.7 times the average income, but most lenders cap borrowing at around 4.5 to 5.5 times salary, how are people supposed to buy? Even those with strong incomes are struggling—especially the self-employed, who often can’t access the higher lending multiples. It just shows how broken things are. Until we see proper reform—whether that's on affordability criteria, housing supply or support for buyers—the dream of owning a home will stay out of reach for far too many.
Copy

Editor
Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Affordability, or the lack of it, is a constant challenge for aspiring buyers. The average house costs far too much for the average salary and there is no sign of that changing soon. We need to build more homes, and fast, although we have been saying that for decades and no government has been able to achieve it.
Copy

Editor
Dariusz Karpowicz
Director at Albion Financial Advice
The latest ONS figures paint a sobering picture of Britain's housing market, with the average English home costing an eye-watering 7.7 times the median salary. While affordability has technically improved since the pandemic peak—with earnings up 20% against just a 1% rise in house prices—the fundamental mismatch remains glaring. When standard lending caps hover around 4.5-5.5 times income, the mathematics simply doesn't add up for ordinary Britons. Despite 91% of local authorities seeing marginal improvements, the stark reality is that only 9% of areas now meet the 'affordable' threshold, compared to 88% in 1997—a devastating decline that requires bold innovation from lenders and meaningful government intervention to address.