Archive · 3 Oct 2026
UK Homes More Affordable Overall, But Location Still Matters
Homes in the UK have become a little more affordable compared with people’s pay.
The average home costs 7.3 times the average yearly earnings.
This is the lowest level seen since 2015.
Wages grew faster than house prices, which helped improve the number.
However, buying a home is still difficult because deposits and mortgage payments can be expensive.
Homes are much harder to afford in parts of southern England, such as Elmbridge and London.
They are more affordable compared with local wages in places such as Inverclyde, Aberdeen and Hull.
First-time buyers generally face a lower ratio of 5.9 times earnings.
The figures show that where someone lives can make a very large difference to what they can afford.
The average UK home costs 7.3 times average earnings, the lowest ratio since 2015.
Affordability improved as wages rose faster than house prices, but mortgage rates and deposits remain major barriers.
Elmbridge in Surrey was the least affordable local area, at 17.4 times earnings.
Inverclyde and Aberdeen were among the most affordable areas, each at 3.5 times earnings.
The typical first-time buyer home costs 5.9 times average earnings, while Northern Ireland’s ratio rose to 6.0.
- Who
- UK homebuyers, including first-time buyers, and the areas covered by Lloyds analysis.
- What
- The UK average house price-to-earnings ratio fell to 7.3, although affordability varies sharply by location.
- When
- The figures cover April to June 2026, with comparisons to the previous year.
- Where
- Across the United Kingdom, with the largest differences between southern England, Scotland and northern England.
- Why
- Wages rose faster than house prices, but higher mortgage rates and deposit requirements continue to make buying difficult.
Signs of Improving Affordability
Continuing Barriers for Buyers
House prices compared with earnings
Signs of Improving Affordability
Lloyds said rising wages and relatively stable house prices narrowed the gap, bringing the national ratio to its lowest level since 2015.
Continuing Barriers for Buyers
A lower price-to-earnings ratio does not mean homes are easy to buy, because mortgage rates and required deposits still affect affordability.
Importance of location
Signs of Improving Affordability
Buyers who can move may find better value in parts of Scotland and northern England, where homes cost less relative to local earnings.
Continuing Barriers for Buyers
The very large differences between areas mean buyers in southern England, including Elmbridge and Kensington and Chelsea, continue to face exceptionally high ratios.
Help for first-time buyers
Signs of Improving Affordability
The proposed Your First Home scheme in England could let eligible first-time buyers purchase new-build homes with a 2.5% deposit and government support of 20% toward the purchase price.
Continuing Barriers for Buyers
The scheme is not expected to remove the fundamental differences between local housing markets, and further details are still expected in the Budget.
- UK average ratio
- 7.3 times average earnings, down from 7.6 a year earlier.
- Lowest ratio since
- 2015.
- Least affordable area
- Elmbridge, Surrey, at 17.4 times earnings; its average property price was about £726,523.
- Most affordable areas
- Inverclyde and Aberdeen, both at 3.5 times earnings.
- Typical first-time buyer ratio
- 5.9 times average earnings.
- Most affordable listed property
- Kingston upon Hull, with an average price of £134,642 and a ratio of 3.6.
- Northern Ireland
- The ratio increased from 5.8 to 6.0 as house prices rose faster than wages.