The ONS has published its Housing Purchase Affordability analysis covering the UK in the financial year ending 2024, which shows slightly improved ratios of house prices to household incomes but a long-term trend of ‘homes generally being unaffordable’.
The data also reveals that local people are being increasingly priced out of their home towns: out of 317 local authority areas in England and Wales, only 29 had homes that were affordable to those who worked there – the highest number since 2004.
The median house price to disposable household income affordability ratios were 7.9 in England, 5.4 in Wales, 5.3 in Scotland and 4.6 in Northern Ireland. The median home sold for £290,000 in England and £200,000 in Wales, with the average income in both countries £37,000. In Scotland, the average priced home was £185,000 and average income £35,000. Northern Ireland had an average income of £36,000 and the average home cost £168,000.
In England, only those with an income in the highest tenth percentile could afford an average-priced home with fewer than five years of income. For those in the lowest 20% of earners, the average-priced home was 13 times the household income. In Wales and Scotland, the top 40% of earners could afford an average home, and in Northern Ireland those earning an average income could afford an averagely priced home.
Affordability across English regions was even more varied. In London, an average home was unaffordable (more than five times income) for any household income decile, costing the equivalent of 25 years’ income. In the North East – the most affordable region – the average priced home cost the equivalent of 8.5 years income for a household in the lowest income brackets.
Local authority level house sales prices for England and Wales revealed that in 2024 only 9.1% were affordable for those who worked there. In 1999, 69% of local authorities were affordable to local residents, which had fallen to 16.8% by 2004.
In 2024, the most affordable local authority was Blaenau Gwent in Wales, where an average home cost 3.6 times the average income. The least affordable was in Kensington and Chelsea, where homes cost 35.5 times the average household income.
There were no affordable homes in local authorities in four regions: the East of England, London, South East and South West. Of the 10 most affordable local authorities, four were in the North West, four were in Wales, with one each in the North East and Yorkshire & the Humber.
The full data set can be found at https://www.ons.gov.uk/peoplepopulationandcommunity/housing/bulletins/housingpurchaseaffordabilitygreatbritain/2024
