Open Property Group’s latest findings paint a stark picture of the housing market, showing that home ownership has become financially unrealistic for the majority of UK workers. With the average home costing 7.7 times the median income, affordability has slipped well beyond conventional mortgage limits.
The ONS reports that in 2024 the typical house price reached £290,000, against a median full-time salary of £37,600. Based on common lending criteria, this leaves only the top tier of earners able to purchase an average-priced home comfortably.
- House prices now 7.7x average annual income (ONS, 2024)
- Traditional mortgage limit: 4.5x income – leaving most buyers priced out
- In London, affordability ratios exceed 11x earnings in several boroughs
- Affordability gap has widened 75% since 1999 (4.4x to 7.7x)
Jason Harris-Cohen, Managing Director at Open Property Group says “Our analysis shows that home ownership has become a financial impossibility for the majority of UK earners. What we’re witnessing is not just a temporary market fluctuation but a structural failure that has been decades in the making. Wages have not kept pace with rising property values, and this disconnect is now so severe that even diligent savers with stable incomes are finding that the goalposts are constantly shifting out of reach.
This growing gap between wages and property prices is locking millions out of ownership and forcing people into long-term renting. The traditional housing ladder, where people start small and gradually move up, is no longer functioning for everyday buyers. Instead, it has become a system where those without family wealth or large deposits are left behind.
If we want to restore balance and fairness to the housing market, policymakers must focus on long-term affordability rather than short-term incentives that do little to solve the underlying issue. Without meaningful intervention, we risk creating a generational divide where owning a home becomes a privilege reserved for the wealthiest, rather than a realistic aspiration for working people.
We also need to acknowledge that meaningful reform must address several interconnected factors that continue to push prices further out of reach. In reality, buyers are facing a perfect storm of challenges, including:
- Stagnant wage growth compared to rising living costs
- A chronic undersupply of genuinely affordable homes
- High deposit requirements that outpace savings rates
- Regional disparities that leave workers unable to live near their jobs
- Mortgage rates that remain elevated despite recent market adjustments
Without tackling these issues collectively, affordability will only worsen.”
With affordability ratios now at record highs:
- The average first-time buyer needs a deposit of £50,000–£80,000
- Private rental demand continues to rise as buyers remain priced out
- More than 4.6 million households now rent privately. Up 25% in a decade
Experts warn that without targeted interventions such as affordable housing expansion, shared ownership schemes, and regional wage adjustments, the UK risks “permanently pricing out” younger and middle-income generations.
