# Lloyds: House Price Affordability Hits 11-Year High

> UK house prices now cost 7.3 times median earnings, down from 7.6 in 2025, but mortgage costs rise.
- Title: Lloyds: House Price Affordability Hits 11-Year High | Shortify
- Summary: UK house prices now cost 7.3 times median earnings, down from 7.6 in 2025, but mortgage costs rise. Lloyds Bank reports UK house prices cost 7.3 times median…
- Keywords: lloyds bank, house prices, median earnings, mortgage rates, affordability, first-time buyers, london, south east, scotland, elmsbridge, kensington and chelsea, Lloyds
- Source: MoneyWeek — https://moneyweek.com/investments/house-prices/lloyds-bank-house-price-affordability-mortgage-rates
- Published: 2026-10-01T23:01:00+00:00
- Read time: 1 min
- Topics: lloyds bank, house prices, median earnings, mortgage rates, uk, affordability, first-time buyers, london, south east, scotland, elmsbridge, kensington and chelsea
## House Price Affordability
The average UK home now costs 7.3 times median earnings, down from 7.6 in 2025 and at its lowest point since 2015.
## House Price Growth
Lloyds data showed the average UK house price rose by 0.5% to £299,131 between Q2 2025 and Q2 2026.
## Earnings Growth
Median earnings went up by 4.5% to £40,790 over the same period.
## Mortgage Rate Spike
Higher mortgage rates resulting from the Middle East conflict counteract affordability improvements.
## Mortgage Payment Rise
The average monthly mortgage payment rose from £1,100 to £1,157 between Q2 2025 and Q2 2026.
## First-Time Buyers
The average property price for first-time buyers rose by 0.3% to £239,681 between Q2 2025 and Q2 2026.
## First-Time Affordability
The average UK first home now costs 5.9 times median earnings, down from 6.1 in 2025.
## First-Time Savings
First-time buyers typically need to save around £24,000 for a 10% deposit.
## London Affordability
London and the South East remain the least affordable places to buy a home based on local house prices relative to median incomes.
## Regional Affordability
The house price to income ratio fell from 10.9 to 10.3 in Greater London and from 9.7 to 9.1 in the South East between 2025 and 2026.
## Northern Ireland
Northern Ireland was the only UK region where homes became less affordable between 2025 and 2026.
## Key takeaway

Lloyds Bank reports UK house prices cost 7.3 times median earnings, the lowest since 2015, but higher mortgage rates strain affordability for buyers.