Housing in England has become more affordable for the average full-time worker than at any point since 2015, according to new official data released Thursday (26 March) by the Office for National Statistics (ONS).
The median house price in England reached £300,000 in the 12 months to September 2025, while median annual earnings for full-time employees stood at £39,300. That works out to an affordability ratio of 7.6 – down from 7.8 the previous year and the lowest level recorded since 2015.
In Wales, the picture was even better: the median home cost £213,000, or six times median earnings of £35,800, returning to levels last seen consistently between 2015 and 2020.
Why affordability is improving
The improvement stems from a clear shift in the balance between wages and house prices.
Since 2021, when affordability ratios peaked amid the post-pandemic boom, median house prices in England have risen by just 5%, while average earnings have climbed 25%.
In the most recent year alone, earnings grew by 4.0% (£1,580), outpacing the 1.7% rise (£5,000) in median house prices.
This marks the continuation of a multi-year trend in which wage growth has consistently outstripped property price inflation, easing pressure on potential buyers after years of stretched affordability.
Even using the National Living Wage (£23,810), an average home in England cost 12.4 times those earnings in 2025, down from 13.0 the year before.
Stark regional divides persist
While the national picture has brightened, huge variations remain across England and Wales.
- London continues to be the least affordable region, with a ratio of 10.6. Buyers there would need an additional £279,000 beyond five times earnings to purchase a median home.
- The North East is the most affordable, with a ratio of exactly 5.0 – meaning an average home is theoretically within reach at five times earnings.
- The most affordable local authorities were Hyndburn and Kingston upon Hull (both 4.1).
- At the other extreme, Kensington and Chelsea recorded a ratio of 25.2, though that has improved from 28.2 in 2024 and a peak of 44.0 in 2018.
Outside London, the South East, and the East of England, very few areas now have ratios above 10. The number of local authorities with ratios of 12 or higher has fallen sharply from 76 at the 2021 peak to just 33 (about 10% of areas) in 2025 – the lowest since 2014.
Affordability improved in 67% of local authorities between 2024 and 2025.
Still far from “affordable” by historical standards
Despite the recent gains, homes remain expensive by most conventional measures. Ratios well above 5 times earnings are generally considered stretched, and only a small fraction of areas (around 7%) now have median homes costing less than five times local earnings – down from 88% of areas back in 1997.
The ONS data uses workplace-based median earnings and actual house sales prices, so it doesn’t account for deposits, mortgage rates, multiple earners in a household, or ongoing costs like rents and bills. Separate releases cover rental affordability.
New-build homes also continue to command a premium. They averaged £355,000 in England compared with £290,000 for existing properties, though they made up only a small share of sales.
The data will come as welcome news for first-time buyers and those locked out of the market in recent years, especially as mortgage rates have eased from their recent highs and wage growth has remained relatively robust.
However, affordability is only one piece of the puzzle. High deposit requirements, limited supply in desirable areas, and regional imbalances mean many households, particularly in London and the South East, still face significant barriers.
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