The Office for National Statistics (ONS) reported on 27 July that in the year ending 2022, the average house price in England was £275,000, and the average annual disposable household income was £33,000, equivalent to a ratio of 8.4 years of income. This compares with average house price to income ratios of 6.4 in Wales, 5.3 in Scotland and 5.1 in Northern Ireland.

The current trends are mixed; in England, Scotland and Northern Ireland, affordability ratios improved slightly compared with the previous financial year; in Wales, the affordability ratio worsened, from a ratio of 6.1 to 6.4.

Andy Russell, CEO at Wealthify, said of the figures “suggest that it is still challenging for young people to get on the housing ladder, although there is a small degree of hope for those in the UK where affordability has slightly improved. This could be good news for those who are well on their way to saving a sizeable deposit. It is a different story for the thousands of young people who are not very far along on their saving journey. They may feel that, with the cost of living and mortgage rates rising all the time, the prospect of owning their own home is fast becoming a pipe dream.”