In England and Wales, Blaenau Gwent, Burnley and Blackpool had the most affordable housing in 2024, whilst London continues to rank low on the affordability tables. Last year, housing affordability in England and Wales returned to pre-pandemic levels after a sharp increase between 2020 and 2021.
As the Labour Government sets out £2bn of investment in social and affordable housing in its Spring Statement, data released earlier this week by the Office of National Statistics highlights a stabilisation of housing affordability in 2024.
Polimapper has visualised key data on housing by local authorities to highlight the potential of the new funding in the sector.
Whilst median house sale prices have increased by 1% since 2021, average earnings have increased by 20%.
In 2024, the median average home in England cost 7.7 times the median average earnings of a full time employee, a difference between £290k and £37.6k, as you can see in the map below. In Wales, the average home (£201k) was 5.9 times annual earnings (£34.3k). For a house to be considered affordable, it should cost no more than 5 times average earnings.
On a local level, 9% of local authorities across England and Wales had homes selling for less than five times full-time earnings, and, therefore, met the affordability standards. Although this is the highest rate since 2015, it also is a substantial decrease from 88% in 1997.
Most affordable housing in 2024 was in Blaenau Gwent, Burnley and Blackpool, as the areas saw ratios of median house price to median gross annual workplace-based earnings below 4. On the heatmap, the high ratios in London are clear to see. In particular, Kensington and Chelsea (27), Westminster (18), and Richmond (17), which had some of the highest ratios in the country.
About this map
The map below shows housing affordability ratios per local authority, alongside median house prices and income. The data visualised shows that Labour’s housing reforms could have a significant impact in areas in London and the South East.
To view statistics in your area double click on the map or click here to launch the full page version!
Geodata context
Yesterday, the UK Government announced an investment of £13 billion more in capital infrastructure over the next five years and an additional £2 billion in social and affordable housing, as part of its Spring Statement.
Labour seeks to build 1.5 million homes in England during this parliament, supported by reforms in the Planning and Infrastructure Bill. The Office for Budget Responsibility expects that the increase in housing supply will lead to long-run economic growth sustainably, increasing GDP by 0.2%.
Kate Henderson, chief executive officer of the National Housing Federation: ” [The] Spring Statement clearly indicates that delivering new social housing is intrinsic to the government’s plans for growth. The £2bn downpayment for new affordable homes is hugely welcome and vital in preventing a cliff edge in delivery, ahead of the new funding programme being announced at the Spending Review.
“Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on welfare, health, and homelessness as well as boosting the economy. Housing associations are ready to work with the government to deliver a generation of new social homes. We hope to see a significant increase in funding for affordable housing at the Spending Review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need.”
Rachael Williamson, interim director of policy, communications and public affairs at the Chartered Institute of Housing: “the Office for Budget Responsibility’s analysis shows that the government will struggle to meet its target of building 1.5 million homes without significant investment in social and affordable homes.* As we look towards the Spending Review in June, it is vital that government continues its work to develop a long-term successor to the Affordable Homes Programme that prioritises homes for social rent, and delivers the level of funding that is required to tackle soaring levels of homelessness. “
“Beyond housing, we share the concern of charities and consumer groups that cutting benefits will place more people into hardship. Housing costs remain high, especially for private renters, and next week energy bills will rise again. The cost of living continues to be a persistent challenge for those who have the least, and we need to see more support delivered through the welfare system for those who need it, not less.”
Greg Reed, chief executive officer at Places for People’s Group: “Quality new social housing is a known driver of growth and wellbeing, adding millions to the economy, improving health outcomes, and creating thriving Communities. This is sensible investment and Government has listened to our sector but our voice must remain heard when times get tougher for Communities. We’re really concerned about the impact of the proposed welfare reforms as many of our Customers already struggle to afford the essentials.”