Housing affordability in England and Wales: 2024
In 2024, the median average home in England, at £290,000, cost 7.7 times the median average earnings of a full-time employee (£37,600); in Wales the average home (£201,000) was 5.9 times annual earnings (£34,300).
Affordability in England and Wales in 2024 has returned to its pre-coronavirus (COVID-19) pandemic levels after a sharp increase between 2020 and 2021 (worsening affordability); median house sales prices have increased by 1% since 2021, while average earnings have increased by 20%.
In 2024, 9% of local authorities (LAs) (27) had homes bought for less than five times workers’ earnings on average and were therefore deemed affordable; this is the highest proportion since 2015, but well below that at the start of the series in 1997 (88% of areas).
Housing affordability improved in 289 of the 318 LAs in England and Wales (91%) and worsened in 28 (9%) since 2023.
The most affordable LAs in 2024 were Blaenau Gwent (with a ratio of 3.8), Burnley (3.9) and Blackpool (3.9); the least affordable was Kensington and Chelsea (27.1, which was about seven times less affordable).
Between 2019 and 2024, 4 of the 10 largest increases in affordability ratios (worsening affordability) were in the East Midlands, while the 10 largest decreases in affordability ratios have all occurred in LAs in London.
Toby Leek, President of NAEA Propertymark, comments:
“It’s encouraging to see that overall housing affordability has increased year on year. As many people battle increases in ongoing expenses, it’s positive to see that this easing counteracts some of those pressures and allows home ownership aspirations to continue for many people.
“Notably more so in England, the affordability ratio has decreased significantly, with areas from up and down the country becoming more affordable allowing people across the country to step onto the housing ladder or move home more easily.
“In Wales, affordability has notoriously been better than across other areas of the UK, therefore, to see this further improve in 2024 is great news.
“However, ongoing issues remain, especially for first-time buyers as the average deposit needed to enter the market and take advantage of more competitive mortgage deals currently sits at around £50,000 which is out of reach for many people. Alongside this, interest rates are higher than what many are used to witnessing, which continues to place additional pressure on finances. Government-backed schemes are needed for first-time buyers moving forward and once inflation, and in turn interest rates, continue on their downward path, we hope this also offers the extra boost many other people need in order to work toward their home ownership goals.”
You May Also Enjoy
Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings
Mortgage completions surged 50 per cent in March amid race to avoid higher stamp duty
How Technology is Changing the Prime Property Viewing Experience
Average two-year fixed mortgage rate for 60% LTV now cheaper than five-year rate
How UK Property Investors Can Manage Exchange Rate Risk When Buying Off-Plan Overseas
