Quick wins for a faster PC:
Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →UK house price affordability reached its best level in 11 years in Lloyds Bank’s 2 October 2026 review—but that means house prices are lower relative to earnings, not that buying a home has become affordable for everyone. The bank’s price-to-income ratio fell to 7.3 in Q2 2026 from 7.6 a year earlier, while its estimated monthly mortgage payment for an average home rose to £1,157.
What does an 11-year high in affordability mean?
Lloyds measures affordability by comparing house prices with average earnings. Its ratio fell to 7.3 in Q2 2026 from 7.6 in Q2 2025, the lowest reading since 2015. A lower ratio means the typical property price is smaller relative to earnings than it was before. “11-year high” describes affordability; the underlying house-price-to-income ratio is at an 11-year low. It does not mean house prices have reached a peak.
The ratio is a broad comparison, not a personal mortgage assessment. It does not account for each buyer’s income, deposit, debts, credit history, mortgage rate or other costs. Lloyds reported that, over the same Q2-to-Q2 period, the average UK property price increased 0.5% to £299,131, while average earnings increased 4.5% to £40,790. Earnings grew faster than prices, bringing the ratio down. Lloyds Bank’s affordability review sets out the calculation and its figures.
Is it easier to afford a house now?
By Lloyds’s price-to-income measure, yes: the average UK home price is lower relative to average earnings than a year earlier. But a better ratio does not automatically make a monthly mortgage payment manageable or solve the challenge of raising a deposit. In the same review, Lloyds estimated the average monthly mortgage payment for its broad average-home comparison had risen from £1,100 to £1,157.
#1 Best Overall
That contrast matters because the ratio and the mortgage-payment estimate answer different questions. The ratio compares prices with earnings; a mortgage payment reflects borrowing costs as well as the amount borrowed. Lloyds says mortgage rates are higher than a year ago, but the figures here do not establish a separate market-wide rate. Its repayment amounts are the bank’s estimates, not a universal payment for every borrower.
What has changed for first-time buyers?
Lloyds reports a similar improvement for first-time buyers. Their average property price was £239,681 in Q2 2026, up 0.3% year over year, while their price-to-income ratio fell to 5.9 from 6.1—the lowest since 2015. Yet Lloyds’s estimated monthly payment for a first-time buyer rose from £1,100 to £1,150.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
Saving for a deposit remains a substantial hurdle. Lloyds says a first-time buyer typically needs around £24,000 for a 10% deposit. It mentions smaller-deposit mortgages as a possible route for some buyers, not a solution suitable for everyone. A smaller deposit can change the amount borrowed and the mortgage terms; buyers should compare eligibility, fees, interest rates and total repayments before deciding.
How much does affordability vary by location?
The UK-wide ratio masks large differences. In Lloyds’s Q2 2026 figures, Greater London had a price-to-income ratio of 10.3 and the South East 9.1. At the lower end among the local authorities it identifies, Inverclyde and Aberdeen each recorded 3.5. A national average therefore cannot show whether a particular area—or a buyer’s budget—is affordable.
How does Lloyds’s figure compare with the official house-price index?
The UK House Price Index reported a provisional average UK house price of £272,000 and annual inflation of 2.0% for June 2026. That is a price-only statistic for a different period, using a different source and method from Lloyds’s Q2 affordability comparison, which gives an average property price of £299,131 alongside earnings and a price-to-income ratio. The figures should not be treated as competing estimates for the same measure. See the UK House Price Index reports for the official series and its release details.
Quick Recap
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
Rank #4
What should a prospective buyer take from the figures?
- Use the lower ratio as evidence that prices have become more favourable relative to earnings in Lloyds’s annual comparison—not as proof that a home is affordable for you.
- Work out a realistic monthly budget that includes the mortgage payment and other housing costs, rather than relying on a national ratio.
- Plan for the deposit separately. If considering a smaller-deposit mortgage, compare the full costs and terms and check whether you meet the lender’s criteria.
- Check local prices and your own income: the large regional differences mean the UK average may be a poor guide to the area where you hope to buy.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
