Only the wealthiest 10% of households in England can afford an average-priced home, official figures from the Office for National Statistics (ONS) reveal. The study highlights the widening gap between house prices and household incomes, with homeownership now deemed “unaffordable” in most of the UK, except Northern Ireland.
The ONS report states it would take 8.6 years of average disposable income—£35,000 annually—to afford an average home priced at £298,000 in England, nearly double the ratio from 1999. In Wales, Scotland, and Northern Ireland, affordability ratios are lower, with Northern Ireland still considered affordable for the average household.
In London, where prices have soared, even the top 10% of earners, with incomes of £89,901 or more, would struggle to buy an average property, priced at £530,000. For those in the lowest income brackets, purchasing a home in London would take decades.
The figures underscore the challenge faced by Keir Starmer’s Labour government, which has committed to building 1.5 million homes by the end of the current parliamentary term. Experts warn that even with increased housing supply, affordability may not improve without radical changes to the planning system and large-scale social housing projects.
