Despite earnings growth outpacing house prices since 2023, Londoners must earn almost twice median full-time earnings to buy the average home in the capital, according to e.surv’s latest house price index.

The data shows the gap between average earnings and average house price remains substantial across the South East, East of England and the South West.

Scotland and the North East are the only two regions where median full-time earnings exceed the income needed to buy the average home.

The index reveals average house price across Great Britain has reached £333,000 in the year up to October, a 1.9% increase year-on-year.

However, prices were flat over the month and down 0.1% across the quarter.

Regional differences remain clear, with Scotland continuing to record the strongest annual growth in Great Britain at 3.5%, followed by the North West’s 3.3% and Yorkshire and the Humber at 3.2%.

House price growth remained above 2% across Wales, the West Midlands, East Midlands and North East.

Momentum is far weaker further south where annual growth slowed to 1.8% in the South West, 1.1% in the East and 0.7% in the South East.

London remained the only region where prices declined, with the average house price down 1.3% annually and 1.0% over the quarter to £598,700.

e.surv head of research Rob Owens says: “The past three years have brought some improvement in affordability, with strong earnings growth narrowing the gap between incomes and house prices across every region. But elevated mortgage rates continue to weigh on affordability, limiting how far that improvement goes.”

“London illustrates this clearly. Even after recent house-price falls and stronger earnings growth, the income required to buy the average property remains almost twice median full-time earnings.”

“The result is a highly regional market. Scotland and the North East are considerably better aligned with local earnings, while London and much of southern England continue to face a substantial affordability gap.”

“Meanwhile, the Autumn Budget offered targeted support rather than a broad stimulus. Taken together, its measures are unlikely to transform the housing market in the near term.”