The latest Office for National Statistics (ONS) release suggests housing affordability in England is at its best level in a decade. The key driver: earnings have risen faster than house prices in recent years.
Key figures (2025):
England: Median home price £300,000 → 7.6x median annual earnings
(2024: 7.8x | 2021 peak: 9.1x)
Wales: Average home price £213,000 → 6.0x median annual earnings
(2021 peak: 6.6x)
Since 2021 (nominal): Median sale prices up ~5%, while average earnings up ~25%
London: Still the least affordable region at 10.6x average earnings
(down from 12.9x in 2021; lowest since 2014)
Kensington & Chelsea: Remains the least affordable local authority at 25.2x earnings
What this can mean for investors:
- Improving affordability can support a more balanced environment for investors planning with a longer horizon.
- Regional differences remain significant, so outcomes often depend on micro-location and product selection.
- For buyers using finance, it helps to work with scenario-based budgeting (deposit, target LTV, monthly tolerance), rather than relying on a single rate assumption.
This post is for general information only and does not constitute investment advice.
