The UK house price-to-income ratio fell to 7.3 from 7.6 over the year to 2026, according to Lloyds analysis reported by Mortgage Soup. Earnings rose faster than house prices. But the same report puts average monthly mortgage repayments at £1,157, up from £1,100 a year earlier. The figures measure different things: homes became cheaper relative to earnings, while reported borrowing costs rose.
What the 7.3 ratio measures
A house price-to-income ratio compares a home’s price with earnings. A lower figure means the price is smaller relative to the income measure used; it does not tell you what a particular buyer will pay each month or whether they will qualify for a mortgage.
Mortgage Soup’s 4 October 2026 article attributes the figures to Lloyds analysis. It reports an average UK home price of £299,131, up 0.5% year on year, and average earnings of £40,790, up 4.5%. Because earnings grew faster than prices, the reported ratio fell to 7.3 from 7.6, its lowest level since 2015, according to the article. Mortgage Soup’s report is the source for these 2026 figures; the matching primary Lloyds release was not established.
Why the reported monthly mortgage payment rose
The ratio tracks home prices against earnings. A monthly mortgage repayment also depends on how much is borrowed and the loan’s rate, term and repayment structure. A more favourable price-to-income ratio therefore does not prove that a typical buyer’s monthly payment has fallen.
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Mortgage Soup reports average monthly repayments of £1,157, compared with £1,100 a year earlier. Its accessible account does not specify the loan size, deposit, term, repayment type or interest-rate assumptions behind that estimate, so it cannot be used as a personalised payment forecast or a household budgeting figure.
First-time buyers: a lower ratio, but a substantial deposit
The article reports a first-time-buyer price-to-earnings ratio of 5.9, down from 6.1. It gives a typical first-time-buyer property price of £239,681; a 10% deposit on that price would be almost £24,000. That deposit example illustrates an upfront hurdle, separate from the income-to-price comparison.
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Reported average first-time-buyer mortgage repayments rose to £1,150 from £1,100. The article also says those repayments were about 34% of average monthly income. These are averages attributed to Lloyds analysis through Mortgage Soup, not a prediction for every buyer; the underlying payment assumptions are not specified in the accessible account.
Regional differences remain pronounced
The national figure masks substantial variation. Mortgage Soup’s account of Lloyds analysis reports the following comparisons:
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| Area | Reported price-to-income ratio | Other reported detail |
|---|---|---|
| South East | 9.1, down from 9.7 | Remained among the least affordable regions |
| Greater London | 10.3, down from 10.9 | Remained among the least affordable regions |
| Northern Ireland | 6.0, up from 5.8 | House prices rose 7.4% and earnings rose 3.7% |
| Inverclyde and Aberdeen local authorities | 3.5 | Reported as the most affordable local authorities |
| Elmbridge local authority | 17.4 | Reported as the least affordable local authority |
The regional and local-authority figures are from the same Mortgage Soup account of Lloyds analysis. They should be read within their geographic categories: a local-authority ratio is not directly interchangeable with a nation or regional average.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to interpret the affordability news
- Relative affordability improved in the reported measure: earnings growth outpaced house-price growth, bringing the overall ratio down.
- That is not the same as cheaper borrowing: the report says average monthly repayments increased, and the estimate’s loan assumptions are not detailed.
- Individual circumstances matter: the ratio does not capture a buyer’s deposit, household income, mortgage terms or lender eligibility.
- Location changes the picture: the reported ratios remained much higher in London and the South East, while Northern Ireland was the only nation or region whose ratio rose.
Lloyds Banking Group’s housing-market page identifies Andrew Asaam as Homes Director. A separate 2025 Lloyds affordability review provides historical context, but neither source confirms the specific 2026 figures reported by Mortgage Soup.
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- SPEAKS YOUR LANGUAGE: Keys clearly labeled in residential mortgage finance terms like Loan Amt, Int, Term, Pmt; this industry-standard calculator is super easy to use on all realty financing matters from finding a loan that works for your client to considering trust deeds investments, or finding remaining balances or balloon payments and more
- CONFIDENTLY AND EASILY SOLVE: Clients' financial questions whether they're buyers, sellers, investors or renters. Increase your perceived professionalism as a new agent, experienced broker or seasoned loan officer. Close more home sales and impress your clients with fast, accurate answers to all their real estate finance questions from PITI Payments to IRR, NPV and Cashflows
- DEDICATED BUYER QUALIFYING KEYS: Enter client's income, debt and expenses to pre-qualify them to only show properties they can afford. Include tax, insurance and mortgage insurance then compare loan options and payment solutions to give your client choices before they make an offer to buy
- FIGURE OUT THE RIGHT LOAN: For your client at the press of a button for jumbo, conventional, FHA/VA, or even 80:10:10 or 80:15:5 combo loans; check to see if ARMs or bi-weekly loans, quarterly payments or if interest-only payments are the answer; giving your client more choices; easily perform what if loan or TVM calculations find loan amount, term, interest or PITI or PI payments
- BECOME AN INVALUABLE RESOURCE: To your clients by reducing their confusion and uncertainty; ensuring they are able to make a purchase offer; knowing they can afford the down payment; and determining which is the right loan for them. Date-math for listings and contracts too. Comes with a protective slide cover, quick reference guide, pocket user's guide, and long-life battery
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