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First time buyer affordability at decade high

Affordability for first-time buyers (FTBs) reached its most favourable level in ten years last year, despite house price rises over the same period. New analysis from estate agents Yopa shows the average price paid for a first home in the UK has increased 63% since 2014. However, earnings growth relative to income means homes are now the most affordable since 2015.


The analysis compared average FTB house prices with average annual earnings, calculating how many years of income are needed to purchase a first home. In 2024, that figure stood at 7.1 years, based on an average annual income of £31,717 and an average FTB property price of £226,744.


The 2024 affordability ratio matches the level last seen in 2015. The ratio peaked at 8.0 in both 2021 and 2022, before easing to 7.3 in 2023. The improvement is largely the result of stronger wage growth. Average annual earnings rose 6.2% in 2023 and a further 7% in 2024. At the same time, FTB house prices fell slightly in 2023 and have grown more modestly since.

Significant regional disparities


London remains the least affordable region for FTBs, with an income-to-house price ratio of 12.4. This means buyers in the capital require more than 12 times the average local income to buy their first home.

The South East, East of England and South West were all above the national average, with affordability ratios of 8.9, 8.5 and 8.4, respectively. At the other end of the spectrum, the average first home in Scotland costs 4.8 times the average annual income, making it significantly more affordable than the rest of the UK.


Challenges remain despite improving trends


Yopa Chief Executive Verona Frankish said affordability remains a major concern for prospective buyers, “It’s fair to say that getting that first foot on the ladder has been no easy task at any point over the last decade and, now that the Help to Buy scheme has ended, it’s perhaps tougher than ever in some respects.” 

However, rising earnings in recent years have improved the overall picture. Frankish added, “The silver lining for today’s first-time buyers is that whilst the average price of a first home has increased substantially over the last 10 years, earnings growth has also improved considerably in the last three to four years.” 

Affordability still challenging


While the improving affordability ratio may encourage prospective buyers, a ratio of 7.1 still implies a considerable stretch for many households and affordability in high-demand regions remains a significant barrier. Nevertheless, with wage growth outpacing house price inflation, there are signs that conditions may be slowly becoming more favourable for those entering the housing market.

Your home may be repossessed if you do not keep up repayments on your mortgage


Source: 

https://www.propertyreporter.co.uk/first-time-buyer-affordability-at-10-year-high.html

8 July 2025

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Recent research has found that half of UK homes increased in value last year. According to Zoopla, 15.2 million properties gained value by an average of £9,900 in 2025. Within this group, 3.1 million homes saw particularly strong growth, rising by more than £20,000. In contrast, 9.1 million households saw a decrease in value by an average of £10,800. In England, the North West recorded the highest proportion of homes rising in value (72%), followed by the North East (67%). The South West reported the largest share of homes losing value (46%), closely followed by the South East (44%). Despite some areas dropping in value, the longer-term picture is more positive for households across the UK; between 2020-2025, the average seller saw their house increase in value by an average of 20%. Source: https://business.zoopla.co.uk/half-of-all-uk-homes-gained-value-in-2025

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by Rebecca Geer • 7 May 2026
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📅 Bank of England Monetary Policy Committee (MPC) Meeting – Tomorrow, 30th April

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by Rebecca Geer • 28 April 2026
Moving home or renovating in 2026? Make sure you’re adequately covered. Before you move, it’s important to check the details of your home contents policy, as exclusions may apply to the removals process. For example, some insurers only cover belongings packed and moved by professionals. Additionally, your home insurance won’t automatically be applicable at your new address, so you will likely need to transfer the policy over (if allowed). Similarly, if you’re renovating your current home, it’s important to review your existing policies. If your project involves structural changes or new fixtures, you will likely need an extra layer of cover to ensure you’re sufficiently protected if something goes wrong. As with all insurance policies, conditions and exclusions will apply. Sources: https://www.moneysavingexpert.com/insurance/home-insurance/moving-to-new-home/#:~:text=You'll%20need%20to%20have,for%20longer%20than%2030%20days https://www.renovationplan.co.uk/news-and-insight/why-you-need-renovation-insurance-cover-in-2026/

Make protection a priority

by Rebecca Geer • 23 April 2026
A survey has revealed that homeowners are more likely to plan a new kitchen than seek out protection. Research found that respondents were more likely to spend money on new furniture (36%), redecorating (26%) or installing a new bathroom or kitchen (25%) than on taking out protection insurance, with only 15% saying it was a priority. However, many mortgage holders expressed concern about their financial security, with 62% saying they are worried they could lose their home if they became too ill to work. More than half (56%) admitted they would struggle to keep up with mortgage repayments after six months without an income. As with all insurance policies, conditions and exclusions will apply. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.covermagazine.co.uk/news/4524648/protection-ranks-lowest-importance-homebuyers

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by Rebecca Geer • 21 April 2026
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by Rebecca Geer • 14 April 2026
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