The latest data reveals the most and least affordable areas for homebuyers across the UK.
The housing market in the UK has reached a crisis point, with new data showing that only the wealthiest 10 per cent of households can afford to buy an average-priced home in England. This stark reality highlights the gap between house prices and wage growth, which has worsened in recent decades.
According to figures from the Office for National Statistics (ONS), purchasing a home is unaffordable in all parts of the UK except Northern Ireland, with house price increases far outstripping the growth in household wages. In England, the cost of an average home – priced at £298,000 – now takes up nearly 8.6 years of an average household’s disposable income of £35,000. This ratio is nearly double what it was in 1999.
In terms of affordability, the average house price-to-income ratio in England stands at 8.6, far higher than in other parts of the UK. In Wales, it is 5.8, and in Scotland, it’s 5.6. Northern Ireland remains the most affordable, with a house price-to-income ratio of 5.0.
The Independent’s analysis, which compares average house prices with local salaries, shows a significant divide across the UK. Areas like Kensington and Chelsea, Richmond upon Thames, and Westminster are some of the least affordable regions, with house price-to-earnings ratios over 20, making it almost impossible for average earners to buy a home. Meanwhile, areas such as Aberdeen City, Burnley, and North Ayrshire are the most affordable, with ratios closer to 4.
In terms of regional affordability, England’s housing market is particularly strained. Only the top 10 per cent of earners in England can afford an average-priced home, whereas in Wales and Scotland, 30 per cent and 40 per cent of households respectively could manage. However, in Northern Ireland, an average household can still afford to buy an average-priced home.
This situation has sparked calls for urgent action. Labour MP Chris Curtis highlighted the need for economic growth to raise wages and ensure that more people can afford homes. He also advocated for radical reforms to the housing and planning systems to increase the availability of affordable housing. The Labour Party aims to build 1.5 million homes over the next five years and has proposed significant changes to the planning system to facilitate this.
This analysis uses data from the ONS on median incomes and the Land Registry’s house price index for September 2024.
