In the UK, housing affordability is still a major problem, with notable differences between areas and occupations. According to a recent Nationwide analysis, first-time homebuyers encounter a number of difficulties as they deal with growing housing costs, substantial down payments, and slowing salary growth.
The long-term outlook is still difficult, even with some little improvements in affordability brought about by salary growth exceeding rises in home prices. A large amount of take-home pay is being consumed by mortgage payments for many vocations, which is made worse by skyrocketing rent and the larger cost-of-living crisis.
Regional Disparities in Housing Affordability
The disparity in housing affordability across the UK is stark, with London maintaining its position as the least affordable region. Kensington and Chelsea top the list, with a house price-to-earnings ratio of 13.6. In contrast, Scotland’s Aberdeen emerges as the most affordable, with a ratio of 2.5.
Regions like the Outer South East, including Chichester (8.5), and the South West, such as Bath and North East Somerset (7.8), also reflect high ratios, illustrating the challenges faced by buyers in areas of strong demand. Comparatively, more affordable regions such as Burnley (2.8) and Hartlepool (2.8) in the North offer some respite for prospective homeowners.
While London and surrounding areas dominate the list of least affordable regions, Scotland, Wales, and parts of the North of England generally provide better affordability. This regional divergence underscores the varying economic conditions and property market dynamics across the UK.
Below are the least affordable authorities per nation or region, as measured by the typical first-time buyer house price-to-earnings ratio (data is not available for Northern Ireland):
| Region | Authority | Price-to-Earnings Ratio |
|---|---|---|
| London | Kensington and Chelsea | 13.6 |
| Outer South East | Chichester | 8.5 |
| Outer Metropolitan | Three Rivers | 7.8 |
| South West | Bath and North East Somerset | 7.8 |
| East Anglia | Cambridge | 7.7 |
| Yorkshire and the Humber | York | 6.3 |
| West Midlands | Wychavon | 6.3 |
| East Midlands | Derbyshire Dales | 6.3 |
| North West | Trafford | 6.2 |
| Wales | Cardiff | 5.6 |
| Scotland | Edinburgh | 5.4 |
| North | Westmorland and Furness | 4.4 |
Professional Income and Affordability
Affordability also varies significantly by profession. Nationwide’s report highlights that mortgage payments for a typical first-time buyer property consume a substantial portion of take-home pay for lower-income occupations. Cleaners, labourers, and couriers, for example, face mortgage costs equivalent to over 50% of their monthly income.
In contrast, professionals in managerial and senior roles experience a lower impact, with mortgage payments representing around 25.6% of their income. This disparity reflects the broader challenges of income inequality and its influence on housing accessibility.
Nationwide senior economist Andrew Harvey pointed out that deposit requirements remain a significant barrier for many, exacerbated by record rent increases and a high cost of living. Around 40% of first-time buyers rely on family gifts, loans, or inheritance to secure deposits, further highlighting the uneven playing field for aspiring homeowners. Here are the most affordable authorities per nation or region :
| Region | Authority | Price-to-Earnings Ratio |
|---|---|---|
| Scotland | Aberdeen | 2.5 |
| North West | Burnley | 2.8 |
| North | Hartlepool | 2.8 |
| Yorkshire and the Humber | North East Lincolnshire | 3.3 |
| Wales | Blaenau Gwent | 3.5 |
| West Midlands | Stoke-on-Trent | 3.7 |
| East Midlands | Chesterfield | 4.1 |
| East Anglia | Great Yarmouth | 4.5 |
| Outer Metropolitan | Surrey Heath | 4.8 |
| Outer South East | Tendring | 5.0 |
| South West | Swindon | 5.3 |
| London | Enfield | 6.2 |
As affordability constraints persist, the report notes that house prices and mortgage activity remain resilient. However, easing these constraints will require a combination of wage growth, lower interest rates, and more affordable housing options to support equitable access across all regions and professions.
