Housing affordability in England has reached its best level in a decade as wages have grown significantly faster than property prices, according to official data from the Office for National Statistics. The median home price of £300,000 in England now stands at 7.6 times the median annual earnings of £39,300, down from 7.8 in 2024 and well below the 2021 peak of 9.1.

In Wales, the affordability ratio improved to 6.0 times earnings, with median house prices at £213,000 compared to median earnings of £35,800. When adjusted for inflation, median house prices have risen just 5% since 2021 while average earnings have increased by 25% over the same period. London remains the least affordable region at 10.6 times earnings, though this represents a significant improvement from the 2021 peak of 12.9.

Industry experts caution that despite the improvement, affordability remains challenging for first-time buyers. Mary-Lou Press of Propertymark noted that "affordability remains stretched by historic standards" and regional disparities persist. The government's target of building 300,000 new homes annually faces headwinds from rising construction costs and mortgage rates, with analysts warning that housing starts have yet to rebound meaningfully.