New UK affordability data shows "aspiring buyers have an Everest to climb"

One broker has said "England is officially the land of the unaffordable", while another added “aspiring buyers have an Everest to climb”, following the publication of new UK housing purchase affordability data.

The median house price to disposable household income affordability ratios were 7.9 in England, 5.4 in Wales, 5.3 in Scotland and 4.6 in Northern Ireland in Financial Year Ending (FYE) 2024, according to new data published today. 

In FYE 2024, the median home sold for £290,000 in England, compared with £200,000 in Wales, £185,000 in Scotland and £168,000 in Northern Ireland; average disposable household incomes ranged from £35,000 to £37,000.

In all four countries, affordability improved in FYE 2024 as ratios decreased compared with the previous year, but this does not change the long-term trend of homes generally being unaffordable in each country since FYE 2006.

Northern Ireland's incomes have increased more quickly than house prices in each of the last five years, resulting in it being the only UK country where homes sold for less than five times average household income in FYE 2024.

In Wales and Scotland, a median-priced home was affordable for the highest-income 40% of households, compared with the 10% highest in England (with the average London home being more than five times the highest 10% household income).

In total, out of 317 local authority (LA) areas in England and Wales, 29 (9.1%) were affordable to those who worked there in FYE 2024, the highest since FYE 2004 (16.8%), but well below the start of the series in FYE 1999 (69.0%).

Katy Eatenton, Mortgage & Protection Specialist at St Albans-based Lifetime Wealth Management, cut to the chase: "England is officially the land of the unaffordable. House price to disposable income affordability ratios being at 7.9 shows exactly how hard it has become to be a homeowner.

“Lenders have been proactive in finding new ways to solve the affordability crisis in 2025 but the reality is that house prices are still extremely high relative to incomes, and often just too high.”

Babek Ismayil, CEO at homebuying platform, OneDome, said that “in the 21st century, affordability in Local Authorities in England and Wales has steadily evaporated”.

He continued: “69% of homes were affordable in 1999, compared to just over 9% today. That says everything about the immense hurdle buyers have to clear these days to get on the property ladder.

"In Northern Ireland, Wales and Scotland, affordability is achievable but in many areas of the South East, especially the capital, it's almost non-existent.”

Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said buyers have an Everest to climb: "With house price growth slowing in 2025, affordability may have improved slightly in 2025, but the overall picture remains pretty grim.

“Only 9.1% of properties being affordable in England and Wales shows the monumental challenge first-time buyers face. Many aspiring buyers have an Everest to climb."

Michelle Lawson, Director at Fareham-based Lawson Financial, said a perfect storm is brewing: "This disparity is sad to read but it is the brutal reality facing buyers today. Homeownership in the UK is getting further out of reach. A perfect storm is brewing.

"The property industry is so important for the economy due to the subsidiaries it also feeds. Housing is a fundamental basic. With rents and mortgages rising but income being depleted, hardship will follow.

“The sooner the Government gets a grip on our economy to get things moving again the better. The November Budget could well be the flame on the touchpaper.”

Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, added: “Affordability stats are a mirage. You might scrape together enough to buy, but the unholy trinity of mortgages, energy and food costs can make keeping a home feel like quicksand. For many, ownership has become less about security and more about survival."

Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, said the only answer is more homes: "The clear takeaway from this data? We need more homes to be built. They can't come soon enough, which is why prices have shot up so much.

"There is a commonly held view that property is a great investment as the price only seems to go up but with these levels of affordability, you have to question how much further they can rise before the majority are priced out of the market altogether."

Eamonn Prendergast, Chartered Financial Adviser at Bromley-based Palantir Financial Planning Ltd, added: “From London to Leeds, the dream of owning a home is still slipping away. Even with a slight improvement in ratios, housing remains fundamentally unaffordable across much of the UK.

"An average home in England now costs nearly eight times disposable household income, far above the broad ‘affordability’ threshold of five. In practice, that means deposits are out of reach for many, mortgage costs remain heavy, and London is in a different world altogether, where even high earners struggle.

“If Britain wants sustainable growth, housing affordability must be part of the solution through supply, planning reform and a long-term strategy that goes beyond short-term fixes.”

Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, said the affordability crisis is no longer limited to London: “The housing affordability crisis isn't just a London problem anymore, it's gone nationwide, with England's median home now costing nearly eight times household income. Even with modest improvements in 2024, only 9% of areas remain affordable to local workers.

"The fundamental mismatch between wages and house prices has created a vicious cycle: soaring rents make saving for deposits nearly impossible, whilst upcoming rental regulations may push rents even higher.

"With lenders scrambling for solutions and builders unable to keep pace with demand, Britain desperately needs a comprehensive strategy - from planning reform to supply increases - that tackles this monumental challenge head-on rather than relying on short-term fixes.”