Homes in England remain more than seven times average earnings despite a gradual improvement in affordability according to the latest figures from the Office for National Statistics.
Data for 2025 shows the median home in England, priced at £300,000, costs 7.6 times the average full-time salary of £39,300. In Wales, the typical home costs £213,000, or 6.0 times average earnings of £35,800.
Affordability has improved since the peak reached in 2021, mainly because wages have risen faster than house prices.
Since then, average earnings have increased by around 25%, compared with a 5% rise in house prices over the same period.
AFFORDABILITY GAPS
The improvement has not been uniform across the country, with affordability getting better in around two-thirds of local authority areas but worsening in just under a third.
The gap between regions remains wide. In the North East, the average home costs around five times earnings, while in London the ratio is more than double that level at 10.5, meaning buyers typically need hundreds of thousands of pounds more to purchase a property.
Kensington and Chelsea remains the least affordable area, with homes costing more than 25 times average earnings, while Hyndburn and Kingston upon Hull are among the most affordable, both with ratios of 4.1.
The figures highlight how affordability pressures remain a major barrier to home ownership despite slower house price growth, with higher mortgage rates continuing to limit how much buyers can borrow even as earnings rise.
MARKET STABILISING – NOT RECOVERING
Mary-Lou Press, President of NAEA Propertymark (National Association of Estate Agents), says:“The latest data from the Office for National Statistics shows signs of improving housing affordability in many areas across England and Wales as earnings begin to outpace house price growth.
“However, from a property professional’s perspective, this reflects a market that is stabilising rather than fully recovering.
“Affordability remains stretched by historic standards, particularly for first-time buyers, and significant regional disparities continue to shape access to home ownership.”
VALUABLE TOOL
She adds: “Alongside the data, the ONS’s housing affordability calculator is a valuable tool for prospective and current homeowners when figuring out their finances and researching their next home move. It also highlights how these pressures vary at a local level, reinforcing the need for targeted solutions.
“Wider global economic uncertainty and geopolitical unrest also have the potential to influence inflation, interest rates and supply chains, which could impact future housing affordability and market stability.
“Ultimately, without a sustained increase in housing supply and continued support for buyers, affordability challenges will remain a key issue across both the sales and rental markets.”
