Thursday, 2 October 2025
The housing market in England and Wales saw a notable improvement in affordability in 2024, following a sharp decline during the COVID-19 pandemic years. According to data released by the Office for National Statistics (ONS), the average home in England cost 7.7 times the median full-time salary (£37,600), down from 8.4 in 2023. In Wales, the affordability ratio fell slightly to 5.9 times the average annual earnings of £34,300. This marks a return to affordability levels last seen before the pandemic-driven surge in house prices between 2020 and 2021.
Overall, 91% of local authorities (289 out of 318) in England and Wales experienced improved affordability in 2024, while only 9% saw conditions worsen. Despite the improvement, housing remains out of reach for many in some areas. Only 9% of local authorities recorded house prices below five times the average annual income—a threshold commonly used to define affordability. While this is the highest share since 2015, it remains significantly lower than in 1997, when 88% of areas were considered affordable.
Blaenau Gwent in Wales was identified as the most affordable area in 2024, with a price-to-income ratio of 3.8. It was followed closely by Burnley and Blackpool, both with ratios of 3.9. On the other end of the spectrum, Kensington and Chelsea in London remained the least affordable local authority, with homes costing 27.1 times the average local income—seven times higher than the affordability threshold.
House price growth has largely stabilised over the past few years. Between 2021 and 2024, the median house price increased by just 1%, while average earnings grew by 20%. This shift in the income-to-price balance is a key factor behind the recent improvement in affordability. Between September 2023 and September 2024, median house prices in England and Wales fell by £7,500 (2.6%), while average earnings rose by £2,400 (5.6%).
The trend is especially evident in London, which has historically recorded the highest affordability ratios. The capital’s ratio peaked at 12.9 in 2021 but has since declined to 11.1 in 2024, bringing it closer to levels last seen in 2015. In contrast, affordability in Wales has remained more stable over the long term. After peaking at 6.6 in 2007, ratios in Wales have fluctuated only moderately, staying between 5.5 and 6.5 for much of the past 15 years.
Regional trends also varied between 2019 and 2024. The East Midlands recorded four of the ten largest increases in affordability ratios—indicating worsening conditions—while all of the ten most improved areas were located in London, suggesting the capital is regaining some balance between house prices and income.
This year’s report also highlights the long-term shifts in the housing market since records began in 1997. In England, affordability ratios doubled from 1997 to 2007, then remained relatively stable until 2013 before gradually rising again through to 2018. The pandemic years brought a sudden spike in prices, but with three consecutive years of declining ratios, 2024 sees affordability largely returning to its pre-pandemic trajectory.
The ONS analysis uses workplace-based earnings and house sale prices from the 12 months leading up to September 2024 to calculate affordability ratios. The data forms part of broader efforts to inform housing policy and the updated standard method for assessing local housing need.
While affordability has improved in much of the UK, the report cautions that the figures are not mix-adjusted, meaning they do not account for changes in the types of homes sold. As such, part of the observed improvement may reflect changes in the market composition rather than underlying shifts in real prices. Nonetheless, the overall trend suggests a modest easing of pressure on homebuyers across most regions.
Source: ONS
