London Daily

Focus on the big picture.
Thursday, Dec 04, 2025

Revealed: first-time homes have grown less affordable under the Tories

Revealed: first-time homes have grown less affordable under the Tories

Guardian analysis shows situation has worsened in most of England and Wales since 2015

First-time buyers have seen the gap between their wages and house prices grow in the vast majority of councils in England and Wales, casting doubt on Boris Johnson’s promise to “turn generation rent into generation buy”.

Just over a year ago, the prime minister said he wanted to give people “the fundamental life-affirming power of home ownership” and “spread that opportunity to every part of the country”.

Guardian analysis of prices paid by first-time buyers, however, shows that the affordability gap has grown in 98% of England’s local authorities since 2015, and in every part of Wales.

The traditional benchmark for mortgage affordability is that the amount required from a lender – the property price minus a 10% deposit – should not exceed 4.5 times the buyer’s wage or the combined wage of a couple.

But that target is unachievable for single first-time buyers – who are typically aged 32 – in 95% of local authorities in England, based on the median earnings for people in their 30s.

Single first-time buyers in Wales would not be able to afford a home in 86% of local authorities in the country. Although couples fare better, they would struggle to stay within 4.5 times their wage in almost a third (31%) of council areas in England.

The analysis looked at what has happened to affordability in the six years since the Conservatives won a majority government. The party’s 2015 manifesto said “everyone who works hard should be able to own a home of their own” and outlined schemes for cut-price starter homes and a help-to-buy Isa.

In the run-up to the 2019 election, the party said: “For the UK to unleash its potential, young people need the security of knowing that home ownership is within their reach.”

Since then the help-to-buy loan scheme has been extended, and this year a scheme to guarantee 95% mortgages was introduced. But the analysis shows homes have become less affordable over that period.

“Home ownership is now almost completely out of reach for most people on average or low incomes – with house prices continuing to soar, most people can’t scrape together a sky-high deposit to buy and so are stuck paying extortionate private rents,” Polly Neate, the chief executive of Shelter, said.

“The government has ploughed money into a series of expensive home ownership schemes that most people can never hope to benefit from, as they still require a sizeable deposit when most renters don’t have any savings.”

House prices increased by the largest proportion in Salford, in the north-west of England, where the average house price for a first-time buyer increased by 58% over the six-year period.

This is despite the fact that Salford is within the top 20 most deprived local authorities in England in terms of deprivation.

In 2015, a single first-time buyer would have needed 4.4 times an individual’s wage to afford a typical mortgage, within the affordability criteria generally sought by lenders.

Today, a buyer on the median wage for a person in their 30s in the region would require 6.4 times the average salary.

In Bristol, while a property was affordable for couples seeking to get on the property ladder in 2015, the increase in prices has not kept pace with wages, rising from four times their joint wage in 2015 to 5.1 times their combined salary in 2021.

Two-thirds of London boroughs remain outside the reach of couples seeking to buy their first property in the capital.

In Wales, the biggest proportional increase in house prices between 2015 and 2021 was in Blaenau Gwent, where prices rose by 52.7% across that period, but the area remains affordable for a buyer in their 30s earning the local median wage.

Conversely, while prices haven’t risen as fast, the gap between a first-time buyer’s wage and the average property price was within the 4.5 times limit in 2015 but has since risen to beyond 5.5 times the average salary in Caerphilly, Torfaen and Carmarthenshire.

The analysis is based on Office for National Statistics data showing the median gross annual wage for the 30-39 age group for 2015 and 2020 at regional level compared with house price data for August 2015 and August 2021 as recorded by the Land Registry.

Affordability is defined as 4.5 times a person’s salary or couple’s combined salary compared with a typical mortgage required for a first-time buyer in each council area. Because the typical deposit is 10% of the house price, this calculation was based on 90% of the average property listed by the Land Registry.


Dan Wilson Craw, the deputy director of the campaign group Generation Rent, said: “It is already a struggle to save the deposit to buy your first home, and as prices have shot up home ownership has become even harder … The government has intervened to encourage banks to lend at higher loan-to-value ratios, so buyers don’t need as much in savings. But ultimately if you’re borrowing that much, your monthly repayments will be huge.”

“Ultimately, the only sustainable way the government can help people buy a home is to throw everything they have at reducing rents. That means building more homes where people want to live, and more council homes.”

A government spokesperson said: “Our economy is on track to reach pre-pandemic levels around the turn of the year and wages are rising in real terms.

“We know how important it is for people to own their own home, which is why we have supported over 700,000 households into ownership through shared ownership and help to buy since 2010, and our new First Homes scheme will provide homes at a discount of at least 30% for local first-time buyers.

“We’re also investing over £12bn in affordable homes over the next five years –the largest investment in affordable housing in a decade, alongside increasing skills funding and the national living wage.”

Newsletter

Related Articles

0:00
0:00
Close
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
×