UK Housing Affordability Improves Slightly but Remains Historically Challenging

Nationwide reports modest gains in affordability due to wage growth and lower mortgage rates, yet first-time buyers face significant barriers.

First-time buyers typically pay five times their annual earnings for a home, well above the long-term average of 3.9 times.
Mortgage payments for first-time buyers now average 36% of take-home pay, down slightly from last year but still above the historical norm of 30%.
40% of first-time buyers relied on financial assistance from family, friends, or inheritance to afford a deposit in 2023-24.
Affordability pressures are most severe in southern England, with London remaining the least affordable region, while Scotland and northern England are comparatively more accessible.
Low-paid workers in sectors like care, leisure, and manual labor face the greatest challenges, with mortgage payments consuming over 50% of take-home pay.