House prices far outstrip average wages in the UK (Picture: Getty Images)
Home ownership in England is becoming increasingly unattainable, according to figures from the Office for National Statistics (ONS) and analysis by the Open Property Group.
The data shows that the median house price in England reached £290,000 in 2024, representing 7.7 times the median full-time salary of £37,600.
This ratio far exceeds the typical mortgage lending limit of approximately 4.5 times income, effectively placing home ownership beyond the financial reach of around 90% of UK earners.
The surge in the property price-to-income ratio is not a short-term phenomenon, but reflects a structural issue that has intensified over several decades.
Since 1999, the affordability gap has widened by 75%, moving from 4.4 times average earnings to the current 7.7 times.
The situation is especially acute in London, where affordability ratios surpass 11 times earnings in several boroughs, demonstrating stark regional disparities.
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This deepens the housing crisis as many workers face prohibitive costs in areas close to employment centres.
Jason Harris-Cohen, managing director at Open Property Group, describes this as a fundamental failure of the housing market: ‘Wages have not kept pace with rising property values, and this disconnect is now so severe that even diligent savers with stable incomes find the goalposts constantly shifting out of reach.’
He warned that the traditional housing ladder is broken, leaving millions reliant on long-term renting unless they can rely on significant family wealth or large deposits, which now generally range from £50,000 to £80,000 for first-time buyers.
Unsurprisingly, affordability is worst in London (Picture: Getty Images)
Key factors driving unaffordability
Several interconnected issues have combined to create this affordability crisis:
- Stagnant wage growth: Wage increases have not matched the rising costs of living and housing.
- Housing supply shortages: A persistent undersupply of affordable homes continues to push prices upward.
- High mortgage rates and deposit demands: Elevated mortgage interest rates and increasingly large deposit requirements exceed typical savings patterns, making access to mortgages harder for prospective buyers.
- Regional disparities: High housing costs in key employment areas exacerbate inequality and restrict options for workers.
Together, these factors create a perfect storm, pushing home ownership further beyond the reach of most workers.
And the growing gap between wages and property prices has coincided with a sharp rise in private renting.
Over the past decade, private rented households have increased by 25%, now numbering more than 4.6 million.
This reflects a housing market skewed decisively against ownership, with many younger and middle-income groups facing near-permanent exclusion from the property ladder.
But some recent ONS data suggests modest improvements in affordability compared to 2023, when median house prices were 8.4 times median earnings.
Elsewhere in the UK, median house prices remain lower. Wales, for instance, sees median prices at £201,000, or 5.9 times median earnings.
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However, this marginal easing does little to reverse the overall trend of declining housing accessibility.
Housing experts argue that meaningful interventions are urgently required to address the root causes of this crisis.
Proposed measures include expanding the supply of affordable homes, enhancing shared ownership schemes, and tackling regional wage disparities to deliver balanced housing markets.
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Without such coordinated, long-term strategies, the housing market risks cementing generational divides and social inequality.
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