Housing affordability in England and Wales improved during 2025, according to the Office for National Statistics (ONS).
The ONS has today published data on house prices and annual earnings to calculate affordability ratios for England and Wales.
In 2025, the median average home in England, at £300,000, cost 7.6 times the median average annual earnings of a full-time employee (£39,300).
In Wales, the average home (£213,000) was 6 times the median average annual earnings (£35,800).
Affordability in England and Wales continued to improve in 2025, after ratios peaked in 2021, the ONS said. Since 2021 median house sales prices have increased by 5%, while average earnings have increased by 25%.
Housing affordability improved in two-thirds of local authorities in England and Wales (213 areas) and worsened in 103 (32%) since 2024.
The most affordable local authority areas in 2025 were Hyndburn and Kingston upon Hull, both with an affordability ratio of 4.1.
The least affordable was Kensington and Chelsea (25.2, which was about six times less affordable).
In the North East, an average-priced home was affordable with 5 times average earnings; compared with London (affordability ratio of 10.5) where a further £279,000 would be required to buy an average-priced home in addition to five times average earnings.
Yesterday the ONS said that house price growth has slowed in the 12 months to January 2026, while private rents remained unchanged in the year to February 2026.
