Escape route for tenants as first time buyer affordability improves

Yopa’s research shows that first-time buyer affordability in the UK is at its best level in a decade, driven by strong wage growth. In 2024, the average first-time buyer house price was £226,744, while the average annual income reached £31,717, resulting in a house price-to-income ratio of 7.1 years—matching 2015’s level.

Despite house prices rising by 63% since 2015, earnings have climbed by 44%, helping to improve affordability. The ratio peaked at 8.0 in 2021-2022 before gradually falling due to stronger wage growth and slower house price increases. However, affordability varies widely by region. London remains the least affordable, with a ratio of 12.4, while Scotland is the most affordable at 4.8.

Yopa’s CEO, Verona Frankish, acknowledges that getting onto the property ladder remains challenging, especially since the Help to Buy scheme has ended, but recent earnings growth has provided a silver lining for buyers.