The Office for National Statistics (ONS) has just released its latest data on housing affordability in Britain. The data, up until the end of March 2021, showed that the average home sold in England cost the equivalent of 8.7 times the average annual disposable household income, while in Wales the ratio was 6.0, and in Scotland it was 5.5.  

While purchase affordability ratios for the average home are below their peaks in Wales (2007) and Scotland (2008), affordability ratios in England are worse than at any point since the series began in 1999.   

Across English regions, an average-priced home in the Northeast cost the equivalent of almost 12 years of income for a low-income household (10th percentile) compared with 40 years in London.   

In the most affordable English region, the Northeast, low-price homes (10th percentile) are available at around five times a 10th percentile or higher disposable household income.
 
Affordability ratios in detail   
In England, the ONS says that the cost of a median priced house was £275,000 at the end of Q1 2021, while the median income was £31,800, which is the equivalent to an affordability ratio of 8.7 years of income. However, according to Nationwide, UK property prices have increased by 16.8% in the 15 months since then (to the end of June 2022), while average salary increases are currently 3% per year. This means that the most likely affordability ratio in England at the end of Q2 2022 was most likely around 9.7 years’ salary.   

In Wales, the data to the end of Q1 2021 showed that the median house price was £176,000, with a £29,400 median income resulting in a ratio of 6.0 years of income, while in Scotland, the median house price for the same time period was £166,000 with a £30,300 median income, which is a ratio of 5.5 years of annual income.