Local Affordability vs Local Income
Is this area affordable for locals? The ONS housing-affordability ratio compares the local median house price to the local median full-time earnings.
What is the affordability ratio?
ONS publishes an annual housing-affordability ratio for every local authority in England and Wales. It is the median house price in the LA divided by the median annual full-time earnings of residents working there. Under 5× was the historical norm; anything over 9× is officially classed as severely unaffordable.
The ratio matters because it's the cleanest measure of local price pressure. A 4× ratio means workers in the area can plausibly buy with a 4× income multiple mortgage; a 12× ratio means most local workers are priced out and the housing stock is held by older owners, in-movers from higher-paid areas, or investors.
Frequently asked questions
- Why is the ratio so high in London?
- London median earnings (~£40k) are higher than the national median, but London median house prices (~£550k) are massively higher still. The result is ratios of 12-15× across central London. Other expensive areas (Cambridge, Oxford, Brighton, parts of the South Coast) also exceed 10×.
- What ratio can I actually afford?
- Most mortgage lenders cap at 4.5× single income (or 4× joint). If the local ratio is over 4.5×, the typical local worker cannot afford the typical local home on a standard mortgage. Use our Affordability Calculator to model your specific borrowing capacity.
- Which postcodes are supported?
- England and Wales — ONS publishes the ratio at local-authority level for both. Scotland and Northern Ireland use separate methodologies and are not covered.
Buying or relocating?
Open any Rightmove, Zoopla or OnTheMarket listing with the free HomeThink browser extension for a free AI read — red flags, a score and the full monthly cost.
A description of an area built from public data, not advice about any specific property. Figures are the latest published and may be out of date, and this is no substitute for visiting the area and checking with the source.
Contains public sector information licensed under the Open Government Licence v3.0.
Got a specific property in mind?
Open any Rightmove, Zoopla or OnTheMarket listing with the free HomeThink browser extension and get a Free AI report with red flags, a score and neighbourhood intel in about a minute. Free account, no card required.