The average cost of a home in England was £298,000 in the 12 months to the end of March last year, equal to 8.6 years of household income, the latest official data shows.
The Office for National Statistics calculates this affordability level on an annual disposable household income of £35,000 during the period.
The body sets a house price affordability level at five years of household disposable income.
It adds that since 1999 “house prices have increased twice as quickly as household incomes in England; house prices in Wales and Scotland have also increased more rapidly than incomes, but the differences are more moderate”.
The department points out that average house price to disposable household income ratios were 5.8 years in Wales – based on homes priced at £205,000 and £35,000 average incomes.
In Scotland, the ratio is 5.6 years – based on homes priced at £185,000 and £33,000 average incomes.
While in Northern Ireland the ratio is 5 years — based on homes priced at £160,000 and £32,000 average incomes.
The body says for low-income households, average-priced homes in all four countries have been “unaffordable” since 1999, when it began collecting data in this series.
It says only the 10% of highest-income households in England could afford an average-priced home with fewer than five years of household income in the financial year to 2023.
In Wales, this was the top 30% of highest-income households, and the top 40% in Scotland, while in Northern Ireland an average-priced home was affordable with an average household income.
It adds that in London, the average home was not affordable for any of its 10 ranked household income subsections.
