The UK’s Most and Least Affordable Places to Live

Affordability remains a significant factor in the current UK housing market. While price growth has eased in some regions, the gap between house prices and earnings is a barrier for many would-be buyers.

One of the clearest ways to measure this imbalance is through the house price-to-earnings ratio. This is calculated by dividing average house prices in a given area by average earnings, providing an indicator of relative affordability. In simple terms, the higher the ratio, the less affordable it is for a typical worker to buy a home in that location.

At Bird & Co, we have analysed ONS data on house prices, earnings and house price-to-earnings ratios, using five-year averages, to identify the ten most affordable and least affordable areas across England and Wales.

London and parts of the South East dominate the least affordable rankings, with ratios reaching more than 30 times average earnings in the most extreme cases. Meanwhile, parts of the North of England and Wales remain far more accessible, with ratios closer to four or five times income.

Taken together, the data highlights a continuing regional divide in housing affordability, one that continues to shape where people can realistically buy a home.

The 10 Most Affordable Places to Live in the UK

The most affordable housing markets are largely concentrated across the North of England and Wales, where lower property prices continue to support stronger affordability ratios. The top 10 rankings are as follows:

Topping the list is Blaenau Gwent, with a five-year average affordability ratio of 4.25. With average house prices around £127,600 and earnings just above £30,000, it remains one of the most accessible areas in the UK for buyers.

Closely following are Kingston upon Hull and Neath Port Talbot, both with ratios just above 4.3. In these locations, average house prices typically sit between £133,000 and £150,000, supported by local earnings of around £30,000-£34,000.

Other areas, including Hyndburn, Blackpool, and Burnley, also rank highly for affordability, all recording ratios below 4.5. Even those towards the lower end of the top ten, such as Liverpool and Cumberland, remain relatively affordable with ratios under 5.

While wages in these regions tend to sit below the UK average, lower property prices continue to make homeownership more achievable, particularly for first-time buyers looking to get onto the property ladder.

The 10 Least Affordable Places to Live in the UK

At the other end of the scale, affordability pressures are most pronounced in London and parts of the South East. The top 10 rankings are outlined below:

Kensington and Chelsea remain the least affordable area in the UK, with a house price-to-earnings ratio of 32.69. With average house prices exceeding £1.27 million and earnings below £40,000, the gap between income and property values is stark.

Westminster follows with a ratio of 20.19, driven by average house prices close to £1 million. Despite relatively higher local earnings of just over £49,000, affordability remains heavily stretched.

Several London boroughs, including Richmond upon Thames, Hammersmith and Fulham, Camden, and Wandsworth, also feature prominently, with ratios typically ranging between 17 and 19.

Outside central London, areas such as Elmbridge, St Albans, Epsom and Ewell, and Barnet also rank among the least affordable. While average prices here (roughly £529,000 to £651,000) are lower than central London, they remain significantly out of step with typical earnings.

Overall, the data highlights a clear trend: strong demand and limited supply likely continue to push prices far beyond local income levels in these southern regions.

What’s Driving House Prices Ahead of Earnings?

The affordability gap is being shaped by a combination of structural and economic factors.

A key driver plausibly remains the imbalance between supply and demand. High-demand areas, particularly London and commuter zones, continue to see strong buyer competition, while housing supply has struggled to keep pace.

At the same time, wage growth has failed to keep pace with long-term house price increases. Although earnings have risen in some sectors, they have not kept up with property values in many regions.

Previous periods of low interest rates also contributed to rising house prices, as cheaper borrowing increased buyers’ purchasing power and stimulated demand. While interest rates increased between 2021 and 2024, placing pressure on borrowing costs, affordability pressures remain embedded in the market.

Regional economic performance also plays a role. Areas with strong employment opportunities and infrastructure investment tend to attract higher demand, which in turn drives prices further upward. More affordable regions often reflect weaker demand but also more limited economic growth.

Together, these factors continue to reinforce a highly uneven housing market across the UK.

Planning to Buy in 2026?

For buyers, the current market presents a mixed picture.

In parts of the North and Wales, homeownership remains relatively accessible, with lower price-to-income ratios supporting affordability. In contrast, buyers targeting London and the South East continue to face significant financial barriers.

Affordability ratios can be a useful guide when assessing where to buy, offering a snapshot of how far incomes stretch against local property prices. However, they should be considered alongside wider factors such as transport links, employment opportunities, and long-term market trends.

For first-time buyers, exploring more affordable regions or adjusting property expectations may improve chances of securing a home. Those focused on higher-cost areas may need to factor in longer saving periods or larger deposits.

As ever, careful planning, budgeting, and professional legal advice are essential when navigating the market.

Methodology and Data Sources

This analysis is based on the most recent ONS data for house prices, workplace earnings, and house price-to-earnings ratios over the past five years across local authorities in England and Wales.

The key metric used is the house price-to-earnings ratio, which measures affordability by dividing average house prices by average annual earnings. A higher ratio indicates lower affordability, while a lower ratio suggests a closer alignment between incomes and property values.

Local authorities were ranked according to this ratio to determine the most and least affordable areas.

Please note that time frames between each data set may vary, and the Isles of Scilly were excluded from the rankings due to incomplete data.

Any conclusions drawn from the data are those of the Bird & Co researchers.