UK Housing Affordability Improves as 51% of Family Homes Become Affordable, Zoopla Reports

More British families can afford to buy a home

Housing affordability has improved across Britain, with new research showing that 51% of two- and three-bedroom houses listed for sale are now within reach of households earning the average income.

The figure represents an increase from 45% in 2025, according to research released by Zoopla on 15 October 2026.

The findings suggest that slower house-price growth, combined with rising household incomes, is gradually improving purchasing opportunities.

However, the improvement is far from uniform.

Buyers in northern England and Scotland have considerably more affordable options than households searching in London and the South East.

The research also highlights a continuing problem: although more properties fall within theoretical affordability limits, mortgage costs remain a significant obstacle.

How much can the average household afford?

Zoopla estimates that a household earning a combined annual income of £53,500 can afford a property priced at approximately £301,000.

The calculation assumes a mortgage worth 4.5 times household income and a 20% deposit.

Under those assumptions, the household would need approximately £60,200 for the deposit.

That is a substantial amount for many first-time buyers, particularly those already paying private rent.

The affordability calculation also excludes mortgage interest, fees and other purchasing costs.

Consequently, a property falling within Zoopla's affordability threshold does not necessarily mean that every household earning £53,500 would qualify for the required mortgage.

Northern England and Scotland lead affordability rankings

The research reveals substantial regional differences.

In the North East, approximately 83% of eligible two- and three-bedroom houses are affordable to the average-income household.

Scotland follows at 80%, while Yorkshire and the Humber records 76%.

These regions benefit from generally lower property prices than southern England.

For families considering relocation, the findings suggest that more affordable housing opportunities remain concentrated outside the most expensive markets.

However, local employment opportunities, transport costs and household circumstances remain important considerations.

London remains difficult for average-income buyers

London continues to present significant affordability challenges.

According to Zoopla, fewer than 100 eligible two- and three-bedroom houses listed across the capital met its affordability threshold.

The South East also remains relatively expensive, with only 23% of eligible properties classified as affordable.

These findings illustrate the scale of the divide between Britain's regional housing markets.

A household with the same income may have a wide selection of family homes in one region but very limited options in another.

For buyers working in London, relocating to a cheaper area may also introduce longer commuting times and additional transport expenses.

Which areas have seen the biggest improvements?

Zoopla reports that the South West and East of England have experienced some of the strongest improvements in affordability.

The proportion of eligible affordable homes increased by approximately 10 percentage points in the South West and nine percentage points in the East of England.

This does not mean that these regions have become inexpensive.

Rather, a larger share of available properties now falls within the research's affordability threshold.

In some cases, slower price growth may be giving household earnings an opportunity to catch up.

Could buyers benefit from a slower housing market?

The latest findings suggest that market conditions are becoming more favourable for some purchasers.

When property prices rise more slowly than wages, buyers may gradually gain purchasing power.

A greater selection of homes for sale can also reduce competition between buyers.

This may encourage sellers to adopt more realistic asking prices.

However, the impact depends heavily on local market conditions.

Properties in desirable locations may still attract strong demand, while homes requiring substantial refurbishment may take longer to sell.

Why mortgage rates remain a problem

Improved affordability on paper does not eliminate the cost of borrowing.

Mortgage interest rates directly affect monthly repayments and the total cost of homeownership.

For example, a £240,000 repayment mortgage over 25 years would cost approximately:

These illustrative calculations exclude fees and insurance.

The difference between 4% and 6% is approximately £279 per month.

For households managing childcare, transport and other living expenses, that difference can be significant.

It also explains why improved house-price affordability does not necessarily translate into stronger buyer demand.

What does this mean for first-time buyers?

First-time buyers may benefit from a wider selection of properties and potentially greater negotiating power.

However, prospective purchasers should calculate affordability using their actual circumstances rather than national averages.

Important considerations include deposit savings, mortgage eligibility, monthly repayments, property condition and moving costs.

Buyers should also consider whether a property will remain affordable if their household income changes.

What does the research mean for property investors?

The findings also have implications for landlords and property investors.

Improved purchasing affordability may encourage some tenants to move into homeownership.

In markets where this happens, rental demand could change over time.

However, high deposit requirements and mortgage costs may continue to keep many households in the private rented sector.

Investors should therefore examine local housing affordability alongside rental demand, employment and population trends.

Will affordability continue improving?

Zoopla expects house prices to grow more slowly than household incomes, potentially supporting further improvements in affordability.

However, this outlook is not guaranteed.

Mortgage rates, employment conditions and changes in housing supply could influence the market.

For buyers, the key question is whether waiting will produce a meaningful improvement in their individual financial position.

A lower mortgage rate may be beneficial, but a rise in the property's purchase price could offset some of that saving.

Conclusion

The increase in affordable family homes from 45% to 51% represents a positive development for Britain's housing market.

However, affordability remains highly dependent on location.

While households in the North East, Scotland and Yorkshire have relatively broad choices, buyers in London and the South East continue to face considerable restrictions.

The latest research suggests that Britain's housing affordability problem is easing in some regions, but high borrowing costs and deposit requirements remain major barriers to homeownership.

Source: Zoopla, research published 15 October 2026.