Earnings growth outpaces house price rises, but affordability challenges persist in high-demand regions
Housing affordability across England and Wales has returned to levels seen before the COVID-19 pandemic, following a sharp decline between 2020 and 2021, according to new data from the Office for National Statistics (ONS).
The ONS’s latest annual housing affordability report revealed that, between 2021 and 2024, median house prices rose by 1%, while average earnings increased by 20%. As of 2024, the median house price in England stands at £290,000, equivalent to 7.7 times the median full-time salary of £37,600. In Wales, the median home price is £201,000, or 5.9 times the average income of £34,300.
The report found that 27 local authorities (9%) had average house prices below five times annual earnings — deemed an affordable threshold. This marks the highest proportion since 2015 but remains significantly lower than in 1997, when 88% of areas met this standard.
Median annual earnings were £37,600 in England and £34,300 in Wales in 2024.
— Office for National Statistics (ONS) (@ONS) March 24, 2025
The median home cost:
· 7.7 times that income at £290,000 in England
· 5.9 times at £201,000 in Wales
Read the full article ➡️ https://t.co/TEPEdKMBbZ pic.twitter.com/rKsnnZEJRS
Affordability improved in 91% of local authorities (289 out of 318) compared to 2023, while conditions worsened in 28 areas, the ONS data showed.
The most affordable local authorities in 2024 were Blaenau Gwent, Burnley and Blackpool, each with a price-to-earnings ratio under 4. In contrast, Kensington and Chelsea remained the least affordable area, with a ratio of 27.1 — around seven times less affordable than the most accessible markets.
The East Midlands saw four of the 10 largest increases in affordability ratios between 2019 and 2024, reflecting worsening affordability. Conversely, the 10 greatest improvements were recorded in London local authorities.
“Housing affordability may have improved to pre-pandemic levels, but it remains a major barrier to homeownership for many people,” commented Mark Eaton, chief operating officer at April Mortgages. “Despite an overall convergence in house prices and wage growth, many buyers are still struggling with mortgage affordability.”
He pointed out that while there was no magic bullet that would completely fix the problem, there are steps borrowers can take to increase their buying power.
“Modern longer-term mortgages of 10 years or more can help borrowers to qualify for larger loan amounts of up to six times joint incomes,” Eaton said. “There needs to be greater education and awareness of these products, as they could help many more people get a foot on the property ladder.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
