Why UK Homes Are Becoming More Affordable (And What It Means If You're Selling or Buying)

After years of rapid house price growth stretching home-ownership affordability to its limits, the tide may be turning at last. Recent data shows that the gap between house prices and wages is narrowing, and for many would-be buyers or movers, this could be very welcome news indeed.

So, what is really driving this change, and what does it mean if you’re about to put your home on the market, or if you are thinking about taking the plunge into homeownership?

Here’s what buyers and sellers need to know about the improving affordability landscape in the property market, and how to take advantage of it.

A Shift in the Market: Wages Are Catching Up

The UK’s house price to income affordability ratio – which is a key measure of how expensive property is relative to earnings – is now forecast to fall to 8.2 in 2026, down from a peak of 9.5 in 2022.

What Does “8.2 Times Income” Actually Mean?

The house price to income ratio shows how many years of the average salary it would take to buy the average home. The lower the number, the more affordable the market is considered to be.

• In 2022, this ratio peaked at 9.5 – meaning the average home cost 9.5 times the average UK salary.
• By 2026, it’s forecast to fall to 8.2, showing a clear (if slow) improvement in affordability.

To put that into perspective: if you're earning £30,000 a year:

• In 2022, the average home might have cost around £285,000
• In 2026, that could fall closer to £246,000

This doesn’t mean house prices are crashing, it just means that wages are growing faster than house prices, making it slightly easier for buyers to get onto or move up the ladder.

This shift is thanks to consistent wage growth finally outpacing house price inflation. While house prices rose sharply during the pandemic years (with double-digit increases in 2021–22), that growth has now slowed, while wages have continued to climb.

To put that into context:

• 2022: House prices rose 11.2%, but earnings rose just 6.9%
• 2023: Wages grew 6.3%, and house prices actually fell 1%
• 2024: Earnings jumped 7.1% against a modest 0.9% rise in prices
• 2025–26 forecast: Wages expected to grow 4.7%, with house prices rising only 2.9%

It’s a slow shift, but a meaningful one – especially for first-time buyers who’ve been priced out in recent years.

So What Does This Mean for Sellers?

You might assume that a more affordable market is bad news for sellers, but that’s not necessarily the case.

1. More Buyers Can Afford to Enter the Housing Market

With the affordability ratio easing, more serious buyers are likely to get mortgage approvals – meaning more demand for well-priced homes.

2. Pricing Strategically Is More Important Than Ever

In a balanced market, buyers will be comparing more options and negotiating harder. If your property is overpriced, it’s likely to get overlooked – especially as price sensitivity increases.

Tip: Emoov sellers can take advantage of local sold-price data and property valuation tools to help price their home correctly from day one.

3. Emphasise Value, Not Just Features

In a market where buyers are watching their budgets more closely, it's important to highlight energy efficiency (EPC ratings), low maintenance costs, or proximity to transport links. Think: what’s the lifestyle and financial value this home offers?

For Buyers: Is Now a Good Time?

If you're thinking about buying, improving affordability is encouraging news – but you’ll still need to go in with your eyes open.

1. You May Not Need to Stretch Your Budget

With prices growing modestly and more sellers open to negotiation (especially if they’ve had a price reduction), you might be able to find a better deal than you would have just a couple of years ago.

2. It’s Still Competitive

Although affordability is improving, demand is still strong, especially for family-sized homes and properties under £300,000. That means desirable listings will still move quickly, so being mortgage-ready is key.

3. Interest Rates Are Still a Factor

While fixed mortgage rates have eased slightly, they remain higher than the ultra-low levels we saw pre-2022. So it’s wise to speak to a mortgage broker before you start searching – Emoov users can access fee-free brokers to compare deals.

For Everyone: Why Balance Is Good News

While no one wants a crash in property values, a more balanced market is good for everyone. It encourages realistic pricing, healthier competition, and fewer fall-throughs due to over-stretched finances or underprepared buyers.

If you're thinking about listing your home, Emoov are offering £100 off listings throughout December, a great time to get a head start before the traditional New Year rush. To redeem your code, simply email Emoov and we’ll send it straight to you.

Final Thought

After years of rising property prices leaving many buyers behind, the UK housing market is finally becoming a little more accessible. For sellers, it’s a great time to list smartly and attract a wider pool of financially-prepared buyers. And for buyers, it’s an opportunity to purchase with greater confidence and potentially more negotiating power.

Whichever side of the sale you’re on, staying informed – and using the right tools – will make all the difference.

Image is from a property for sale December 2025. A detached modernised farmhouse dating back to the 17th Century. For more details see here.