Kensington and Chelsea is the least affordable place to buy a home in the UK, with average house prices reaching £1.204 million in the year to August, equivalent to 20.6 times local earnings. At the other end of the scale, Inverclyde in Scotland is the most affordable location, where typical properties cost £115,000, or three times average annual earnings.
New figures from the Office for National Statistics (ONS) show the average UK home cost £273,000 in the 12 months to August, an increase of 0.9% compared with the previous year. This suggests house price growth is continuing to slow, with annual growth standing at 1.2% in July, 1.5% in June, 3.1% in May and 4.2% in April.
Homes more affordable relative to incomes
Average annual earnings for full-time workers have risen to £40,911 before tax, an increase of 4.5% compared with 2025. As wages have grown faster than house prices, homes have become slightly more affordable relative to incomes. The average property now costs 6.7 times annual earnings, down from 6.9 times last year and the lowest ratio since 2015.
The figure compares with 7.1 times earnings in 2024, 7.5 times in 2023 and eight times in 2022. However, the improvement has been gradual. It has been more than 20 years since average house prices were four times typical earnings, while the five-times threshold was crossed in 2002.
Least affordable areas
Despite relatively high salaries, some of London's wealthiest boroughs remain among the most difficult places in the country to afford a home. Kensington and Chelsea tops the list, with average house prices reaching £1.204 million in the year to August, despite falling by 13.8% over the previous 12 months. Average annual earnings among residents stood at £58,502, meaning a typical property cost 20.6 times their income, the highest house-price-to-earnings ratio anywhere in the UK.
Richmond upon Thames was the second least affordable area, with homes costing 14.5 times average earnings. Camden followed at 13.8 times, ahead of the City of Westminster at 13.4 and Hammersmith and Fulham at 13.3. Other London boroughs featuring among the least affordable locations included Ealing, Haringey, Merton, Hounslow and Islington.
Outside the capital, Elmbridge in Surrey was the least affordable area. Average homes cost £736,000, equivalent to 12.7 times local earnings of £57,962 a year. Mole Valley, also in Surrey, followed with a ratio of 12.6 times earnings. In northern England, Trafford was the least affordable area, with average properties costing £394,000, or 8.6 times the average local salary of £46,055.
Most affordable areas
Inverclyde in Scotland was named the most affordable place to buy a home in the UK. Average properties cost £115,000 in the year to August, the lowest figure recorded anywhere in the country, equivalent to three times average annual earnings of £37,819. The City of Aberdeen was the second most affordable location, with house prices standing at 3.1 times earnings.
West Dunbartonshire and North Ayrshire followed at 3.3 times earnings, while East Ayrshire recorded a ratio of 3.5. Burnley was the most affordable place to buy in England. Average homes cost £137,000, equivalent to 3.7 times local earnings of £36,821. Other comparatively affordable locations included Hartlepool, Hull, Blackpool and County Durham, where average house prices were all substantially below the national average.
Inverclyde also topped the list of the UK's cheapest places to buy, with average house prices of £115,000. West Dunbartonshire followed at £132,000, ahead of Aberdeen at £134,000. Burnley, Hartlepool and Hull all recorded average prices of £137,000. At the opposite end of the market, Kensington and Chelsea had the highest average property price at £1.204 million, followed by Westminster at £887,000 and Richmond upon Thames at £814,000. Camden recorded average prices of £798,000, while Hammersmith and Fulham stood at £755,000.
