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.
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