"What we’re witnessing is not just a temporary market fluctuation but a structural failure that has been decades in the making"
- Jason Harris-Cohen - Open Property Group
Home ownership is now financially out of reach for the majority of UK workers, according to new research by Open Property Group. The analysis shows the average home in England now costs 7.7 times the median salary, well above traditional mortgage affordability limits.
Data from the Office for National Statistics (ONS) indicates that the median house price in England reached £290,000 in 2024, while the median annual full-time salary was £37,600. Based on industry lending caps, only the top 10% of earners can comfortably afford an average-priced home.
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
The affordability gap has widened 75% since 1999 (from 4.4x to 7.7x)
“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,” said Jason Harris-Cohen, managing director at Open Property Group.
“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 with 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.”
