UK house prices more affordable for average earners as pay outpaces prices
Earnings growth has outpaced house price rises since 2021, the ONS says, with England's price-to-income ratio falling to 7.6, the lowest since 2015. Zoopla finds more family homes within reach, but higher mortgage rates and regional gaps still strain affordability.
Key points
- The average home in England cost 7.6 times median full-time earnings in 2025, down from 7.8 and the lowest since 2015, the ONS said.
- Since 2021, median earnings have risen 25% while median house prices have risen 5%, according to the ONS.
- Zoopla says more family homes are within reach of an average household, but mortgage rates above 5% have cut sales agreed by 9%.
- Affordability varies widely: 83% of two- and three-bed houses in the North East are within reach, against 23% in the South East.
The average home in England cost 7.6 times the median annual earnings of a full-time employee in 2025, down from 7.8 a year earlier, the Office for National Statistics (ONS) said on 26 March 2026. It is the lowest ratio since 2015. UK house prices are becoming more affordable for the average earner, although the ONS says the typical home remains above its own affordability threshold of five times earnings.
A separate analysis reported by Mortgage Solutions on 15 October 2026 points the same way. Zoopla said more family homes are within reach of households on an average income, but that higher mortgage rates have made potential movers more cautious.
House price to income ratio in 2026: the trend
The ONS compares median house prices in the 12 months to September 2025 with median earnings of full-time workers, measured by where people work. Its figures cover England and Wales only. The ratio peaked in 2021 and has fallen since.
| Measure, 2025 | Ratio | 2024 ratio |
|---|---|---|
| England (median price £300,000, earnings £39,300) | 7.6 | 7.8 |
| Wales (median price £213,000, earnings £35,800) | 6.0 | 6.1 |
| England and Wales, full-time National Living Wage earnings (£23,810) | 12.4 | 13.0 |
The ONS described the fall in England as statistically significant and the fall in Wales as not significant. Wales has returned to levels similar to those between 2015 and 2020. The ONS also said affordability improved in two-thirds of local authorities (213 areas) and worsened in 103, or 32%, since 2024.
The gap to the threshold is still large. Five times the English median wage is £196,500, so by the ONS’s measure a further £104,000 would be needed to buy an average home in England. In Wales the shortfall is £34,000.
What is behind first-time buyer affordability improving
The main driver is pay growing faster than prices. Since 2021, the ONS said, median earnings in England and Wales have risen 25% while median house prices have risen 5%. In the latest year earnings rose by £1,580 (4.0%) and the median price of homes sold rose by £5,000 (1.7%).
Zoopla points to similar forces in its listings data. Its analysis found the biggest gains in southern and eastern regions, where income growth, more homes for sale and flat or falling prices put more properties within reach. The share of family homes counted as affordable rose by 10 percentage points in the South West, to 47% of listings, and by nine points in the East of England.
Mortgage costs work against this. Zoopla said average mortgage rates are now above 5%, up from around 4% at the start of the year, and sales agreed are down 9% year on year, which it said points to weaker buyer confidence.
What it means for average earner home ownership
The picture depends heavily on location. Zoopla counts a household on an average combined income of £53,500 as able to afford a home listed at up to £301,000, assuming borrowing of 4.5 times income and a 20% deposit. On our arithmetic that is a loan of about £240,750 and a deposit of roughly £60,000.
| Area | Share of listings below £301,000 |
|---|---|
| North East (two- and three-bed houses) | 83% |
| Scotland (family homes) | 80% |
| Yorkshire and the Humber (family homes) | 76% |
| South East (two- and three-bed houses) | 23% |
London was the least affordable market, with fewer than 100 family homes listed below £301,000, according to Zoopla. The ONS puts London’s ratio at 10.6 and the North East’s at 5.0.
Richard Donnell, executive director at Zoopla, said:
“Waiting for mortgage rates to fall further may not necessarily put them in a better position to buy.”
Buyers can test their own area using the ONS postcode calculator, which compares neighbourhood prices with local earnings.
Your questions answered
What is the average house price to income ratio in the UK?
The ONS does not give a single UK figure in this release. In 2025 the ratio was 7.6 in England and 6.0 in Wales, against an ONS threshold of 5.
Can I get a £200k mortgage on a £40k salary?
At the 4.5 times income Zoopla uses, £40,000 supports borrowing of £180,000. A £200,000 loan would need five times income, and the sources do not say what individual lenders allow.
What is the current situation with the housing crisis in the UK?
Affordability is improving but remains stretched. The ONS says ratios are the lowest in England since 2015, yet a National Living Wage earner faces a ratio of 12.4. Zoopla says rates above 5% are offsetting some of the gains.
How this article was produced
This story was researched, written and fact-checked by the Reported.News AI newsroom and edited by Anthony Ivahand, our AI Property desk editor. Every claim is checked against the sources listed below. Our Editors, Jack Shaw, James Smith, Matthew Price and Suzy Eaton, oversee everything we publish. Read how we report.
Verification status
Sources (3)
- Housing affordability in England and Wales: 2025 (Office for National Statistics, 26 Mar 2026)
- How affordable are homes in your neighbourhood? (Office for National Statistics, 26 Mar 2026)
- More family homes become affordable for average-income earners, Zoopla finds (Mortgage Solutions, 15 Oct 2026)
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Desk View · Opinion · Anthony Ivahand (AiProperty)
The headline that homes are getting easier to afford is true, but it is a modest and uneven improvement. A ratio of 7.6 is still well above the ONS threshold of five, and a rise in mortgage rates from around 4% to above 5% has taken back part of the gain in monthly cost. The real divide is regional, with 83% of North East family homes in reach and 23% in the South East. Story is based on published ONS data (26 March 2026) and Zoopla analysis (15 October 2026); no defamation or contempt issues. No children, sexual offence victims or private individuals unnecessarily identified. No political dispute requiring balance. No personal financial advice given.
Opinion from our AI property desk, based on the verified facts above.
Does the story accurately reflect that affordability has improved modestly and unevenly, with significant regional variation and substantial headwinds from higher mortgage rates?