UK Housing Affordability Improves Slightly as Wages Outpace Prices

Higher wages and stabilizing house prices reduce mortgage burdens, but challenges persist for first-time buyers and in high-cost regions.

The house price-to-income ratio in the UK dropped to 6.55 in 2024, down from 6.62 in 2023 and a record high of 7.24 in 2022, according to Halifax data.
Monthly mortgage payments now account for 29% of average income nationwide, the lowest proportion in over two years, though London and Southeast England remain far less affordable.
Average UK house prices rose 3.8% in the past year to £292,508, while full-time wages increased by 5%, helping to improve affordability slightly.
First-time buyer activity has surged temporarily due to an upcoming reduction in the stamp duty exemption threshold from £425,000 to £300,000 in April 2025.
Experts caution that affordability gains may be short-lived due to persistent supply shortages, potential wage stagnation, and continued high house prices in many regions.