Kensington and Chelsea is England's least affordable area

New analysis has revealed the most and least affordable towns for buying homes in England and Wales. Kensington and Chelsea remains the least affordable area for the 26th consecutive year. In 2024, homes there averaged £1.2 million, while the average salary was £44,300, giving a housing affordability ratio of 27.09. In contrast, Blaenau Gwent in Wales is the most affordable, with an affordability ratio of just 3.75. Homes in Blaenau Gwent sold for £130,000, while average earnings were around £34,600. Overall, 93 out of 318 local authorities across England and Wales had affordability ratios over 10 last year. Some areas in London have reported improved housing affordability. For example, Tower Hamlets saw its affordability ratio drop to 7.3 in 2024, down from 8.4 the previous year. Other boroughs with rising wages and stable or falling house prices include Greenwich, Lambeth, Hackney, and Southwark. The Office for National Statistics (ONS) noted that overall, housing affordability has improved in 91% of local authorities since last year. However, just 9% of areas had homes priced at less than five times workers' earnings, which is considered affordable. In England, the median home cost about 7.7 times the average full-time earnings, a slight decrease from 8.4 in 2023. In Wales, the average home cost £201,000, or 5.9 times annual earnings, also marking an improvement. The report pointed out that between 2019 and 2024, London saw the highest increases in housing affordability. Despite these improvements, many still struggle with high housing costs. Sarah Coles from Hargreaves Lansdown emphasized that while wages have risen faster than house prices, affordability remains a major issue. As a result, potential buyers are advised to save as much as possible for a deposit. Starting in April, changes to stamp duty could increase costs for some home buyers. The relief for first-time buyers is set to shrink, making it more challenging for them to enter the housing market.