UK house price growth has continued to cool while wages rise, giving prospective buyers a modest boost in affordability. According to the latest Office for National Statistics (ONS) figures, the average UK property cost £273,000 in the 12 months to August, up just 0.9% year-on-year, down from 4.2% growth recorded in April. During the same period, average full-time earnings grew at a faster rate of 4.5%, reaching £40,911 before tax.
This has pulled the UK house-price-to-earnings ratio down to 6.7, making homes relatively more affordable than at any point in the last 11 years.
Regional contrasts in affordability
The North West highlights stark contrasts in property accessibility. Burnley is England's most affordable borough, where average homes cost £137,000, just 3.7 times local salaries. Trafford tops the list for Northern price stretch, with average house prices at £394,000, or 8.6 times local earnings.
In Liverpool, house prices are listed at an average of £188,000, or 4.9 times the average income of £38,235. In Wirral, it is £222,000, which is 5.8 times the average income of £38,360 for the area. Knowsley house prices are on average £192,000, or 5.1 times the average income of £37,441.
In St Helens, average prices are £186,000, which is 4.9 times the average income of £38,293, and Sefton has an average house price of £221,000, which is 5.7 times the average income of £38,298. In nearby West Lancashire, the average home costs £241,000, or 6.1 times the average income.
Historical context of the ratio
Last August, house prices were 6.9 times higher than wages. In 2024, they were 7.1 times higher; in 2023, they were 7.5 times higher; and in 2022, they were 8.0 times higher. It has been over 20 years since house prices were four times average earnings. House prices became five times earnings back in 2002 and have never been below that level since.
Of course, affordability changes across the country.
The least affordable areas
The wealthiest boroughs in London continue to be the least affordable parts of the country, despite high earnings. Average house prices are down by 13.8% over the last 12 months in Kensington and Chelsea. However, they still cost £1.2 million on average in the last 12 months.
Average earnings of people living in the area are £58,502 a year. For them to buy the average home would mean taking on a mortgage that was 20.6 times greater than their salary, the highest house-price-to-income ratio in the country. Richmond upon Thames has the next highest ratio at 14.5, followed by Camden at 13.8, the City of Westminster at 13.4, and Hammersmith and Fulham at 13.3.
The Surrey borough of Elmbridge has the highest ratio outside of the capital. Average homes in the area cost £736,000 in the year to August, 12.7 times more than the average earnings of £57,962 a year. Another Surrey area, Mole Valley, had the next highest ratio outside of London, with homes costing 12.6 times the local salary. Trafford was the least affordable place to buy in the North of England, with average house prices in the borough at £394,000 in the year to August, 8.6 times higher than the average local earnings of £46,055 a year.
The most affordable areas
Inverclyde in Scotland is the most affordable place to buy a home in the UK. Average house prices in the area were £115,000 in the year to August, lower than anywhere else in the country. That works out at just 3.0 times the average local earnings of £37,819 a year, also the lowest house-price-to-earnings ratio in the country.
Aberdeen is the next most affordable place to buy, with average house prices there working out at 3.1 times average earnings in the area. In West Dunbartonshire, the ratio is 3.3 times; in North Ayrshire, it is also 3.3 times; and in East Ayrshire, it is 3.5 times. Meanwhile, Burnley is the most affordable place to buy a home in England, with average house prices in the area at £137,000 in the year to August, working out as 3.7 times the local average earnings of £36,821.
