Housing affordability in the UK has worsened notably since 2020, with the share of income spent on mortgage payments rising for first-time and repeat buyers. In 2024, homebuyers spent, on average, 20.5 percent of their income on mortgage payments, up from 16.2 percent in 2020. First-time buyers spent a notably higher percentage than repeat buyers. One of the main factors for the declining affordability is the rising housing costs. House prices have increased rapidly since the COVID-19 pandemic. Mortgage rates have also soared since, leading to notably higher monthly payments.

Mortgage repayments as a percentage of monthly equivalised disposable household income, throughout the house price and income distribution.

When comparing the mortgage or rental costs incurred by owners with mortgage, private renters and social renters in England, private renters pay a considerably larger share of their income than the other two groups. While owner occupiers with mortgages paid approximately **** percent of their income on mortgage in 2024, private renters paid ** percent, or more than *********. In terms of average monthly costs, renting a three-bedroom house is more expensive than buying.

Graph and download economic data for Mortgage Debt Service Payments as a Percent of Disposable Personal Income (MDSP) from Q1 1980 to Q2 2025 about disposable, payments, mortgage, personal income, debt, percent, personal, income, services, and USA.

This statistic shows the average mortgage payments in 2004, 2009 and 2014 in the United Kingdom (UK) as a percentage of total disposable income. It showed that the average percentage has varied noticeably in this time period. Although the mortgage payments as a share of disposable income in the UK dropped by around * percent between 2004 and 2009, they then increased by almost ***** percent by 2014.

Expenditure on rent by renters and mortgages by mortgage holders, by region and age from the Living Costs and Food Survey for the financial year ending 2022. Data is presented as a proportion of total expenditure and a proportion of disposable income.

This dataset contains quarterly median capital and interest payments as a percentage of income for first time buyers in England

This dataset contains quarterly median capital and interest payments as a percentage of income for first time buyers in England. The data is owned by the Council of Mortgage Lenders (CML)and permission has been given to publish to ODC.

This statistic shows the average regional mortgage payments in 2004, 2009 and 2014 in the United Kingdom (UK) as a percentage of total disposable income. It showed that when taken as a percentage of total disposable income, mortgage payments do not vary by a great amount depending on region. The majority of mortgage payments across the UK over this time period sit in the same region, between around ** and **%. The most noticeable exception to this is in London in 2014, where the percentage is the highest at just over 31%.

Approximately **** percent of adults who pay rent or a mortgage in the United Kingdom (UK) reported that they were behind on their payment according to a survey conducted between June 28 and July 9, 2023. That was the highest share observed since the beginning of April the same year.

This statistics shows the level of concern with regards to making rent payments or mortgage repayments among adults in Great Britain as of a survey conducted in 2014, listed by respondents income bands. Among respondents earning up to 19,999 British pounds, 11 percent are very concerned about their ability to make rent or mortgage payments.

UK Auto Loan Market size was valued at USD 90.24 Billion in 2024 and is expected to reach USD 128.14 Billion by 2032, growing at a CAGR of 4.50% from 2026-2032.

UK Auto Loan Market Drivers

Demand for Vehicle Ownership: A fundamental driver is the ongoing need and desire for personal vehicles among UK consumers and businesses. This demand is influenced by factors like: * Population Growth and Urbanization: While the UK is a mature market, population shifts and the needs of urban living can still drive vehicle purchases. * Personal Convenience and Necessity: For many, owning a car remains essential for commuting, family needs, and leisure activities. * Preference for Personal Mobility: Despite the growth of alternative transportation, personal car ownership remains a strong preference for a significant portion of the population.

Economic Factors: The overall health of the UK economy plays a crucial role: * Consumer Confidence: When consumers feel financially secure, they are more likely to make large purchases like vehicles, often relying on financing. * Disposable Income: Higher disposable income allows more individuals to afford car payments. * Employment Rates: Stable or rising employment provides the security needed for taking on loan obligations.

Interest Rates: The cost of borrowing money directly impacts the auto loan market: * Bank of England Base Rate: The central bank's rate influences the interest rates that lenders charge for car loans. Lower base rates generally lead to more affordable loans, stimulating demand. * Lender Competition: Competition among banks, credit unions, and other financial institutions can lead to more attractive interest rates for consumers. * Individual Creditworthiness: A borrower's credit score significantly affects the interest rate they will be offered. Higher scores typically result in lower rates.

1. Lending Practices and Regulations: How loans are offered and regulated shapes the market:
2. Loan Terms and Structures: The availability of various loan terms (shorter vs. longer) and structures (e.g., Personal Contract Purchase - PCP, Hire Purchase - HP) influences affordability and consumer choice. PCP remains the most common method for new car financing in the UK.
3. Regulatory Environment: The Financial Conduct Authority (FCA) plays a crucial role in regulating the market, ensuring fair practices and consumer protection. Recent scrutiny regarding discretionary commission models highlights the impact of regulation.

Retirement homes depend on self-funders or local council funding that covers the retirement needs of people who satisfy financial assessment means tests. Tightening government budgets have meant publicly funded fees have failed to cover providers’ operating costs, forcing retirement homes to cross-subsidise local authority beds with fees from self-funded residents. Revenue is anticipated to climb at a compound annual rate of 3.2% over the five years through 2025-26 to £12.0 billion, and it’s set to rise by 0.8% in 2025-26. Much of this is down to care homes' fees mounting to cover costs and being paid for by self-funders, who are saw their disposable income tick upwards in 2024-25, lifting industry revenue. Although the ageing population supports revenue growth, constrained government spending, delayed reform changes and rising costs (particularly for labour) have put pressure on profit. Demand for beds far outstrips the supply, which is driving investment into the industry. Mounting demand from residents who had delayed joining a retirement home during the pandemic contributed to strong growth in revenue in 2021-22. Care homes' fees then edged up in the three years through 2024-25 to cope with enhanced staffing costs, mounting mortgage payments and heightened energy costs – these were all the result of high inflation. This has been to the dismay of many retirees whose purse strings have tightened thanks to the cost-of-living crisis, making hit harder for them to afford to move into retirement homes. Higher fees have therefore dampened some of demand for beds, but they’ve also increased the sales value of care homes, supporting revenue. Retirement home revenue is expected to rise at a compound annual rate of 1.5% over the five years through 2030-31 to £12.9 billion, driven by an ageing population. By 2036, the number of people aged 85 and over will hit 2.6 million, representing 3.5% of the UK population, according to the Office for National Statistics. However, medical advances will make an older population healthier, allowing people to live independently for longer, dampening growth. Sustainable initiatives will be incorporated into the designs of new homes, helping reduce operational costs for retirement homes and supporting profitability. As real disposable income rises, there will be greater demand for luxury retirement homes, driving sales value and supporting industry revenue growth.

This statistic presents the share of mortgage holders expecting to pay part of their mortgage by endowment policy in the United Kingdom (UK) as of January 2015, by family financial status. Out of people who were just starting out or reported being "hard pressed", a 100 percent of each group expected to pay part of mortgage by their endowment policy.

For the past decade, buying a home in the UK has been more affordable than renting one, when only considering the monthly costs. The renting versus buying gap fluctuated during the period and in 2016, it reached its highest value of 131 British pounds. In 2023, the monthly costs for a first-time buyer were 1,231 British pounds, compared to 1,258 British pounds for renters. Rental growth vs house price growth Housing costs in the UK have been on an uprise, with both renting and buying a home increasingly unreachable. Though the monthly costs of buying have consistently been lower in the past decade, house price growth has been much stronger than rental growth since the beginning of the pandemic. Additionally, buyers have been affected by the aggressive mortgage rate hikes, making acquiring their first home even less affordable. Barriers to homeownership Buying a home is not straightforward. For younger (18-40) potential first-time buyers, there are a number of barriers. Approximately one in three first-time buyers point out that raising a deposit was the main obstacle. Other reasons stopping buyers were not being able to take out a mortgage on their current income and poor credit ratings. Unsurprisingly, the highest share of people who buy a home with a mortgage was in the age group of 45 to 55-year-olds.

This statistic illustrates the share of mortgage holders with less than 10,000 GBP left to pay in the United Kingdom (UK) as of January 2015, by family financial status. Out of people who were living for now, *** percent stated that they had less than 10,000 British pounds of their mortgage left to pay.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

What is the average price of residential property in the Netherlands? In the third quarter of 2025, a single-family home cost approximately 568,000 euros. There were large differences between the Dutch provinces, however. Single-family homes were most expensive in the central province of Utrecht, with an average price of 778,000 euros, whereas a similar house in Zeeland had an average price tag of 390,000 euros. Overall, the average price a private individual would pay when buying any type of existing residential property (such as single-family homes but also, for example, an apartment) was approximately 416,000 euros in 2023. Do the Dutch prefer to buy or to rent a house? The Netherlands had a slightly higher homeownership rate (the share of owner-occupied dwellings of all homes) in 2024 than other countries in Northwestern Europe. About 69 percent of all Dutch houses were owned, whereas this percentage was lower in Germany, France, and the United Kingdom. This is an effect of past developments: the price to rent ratio (the development of the nominal purchase price of a house divided by the annual rent of a similar place with 2015 as a base year) shows that the gap between house prices and rents has continuously widened in recent years. Despite a slight decline in the ratio due to slowing house price growth and accelerating rental growth, in 2023, the cost of buying a home had grown significantly faster relative to the cost of renting. Mortgages in the Netherlands Additionally, the Netherlands has one of the highest mortgage debts among private individuals in Europe. In 2025, total debt exceeded 868 billion euros. This has a political background, as the Dutch tax system allowed homeowners for many years to deduct interest paid on mortgages from pre-tax income for a maximum period of thirty years, essentially allowing for income support for homeowners. In the Netherlands, this system is known as hypotheekrenteaftrek. Note that since 2014, the Dutch government has been slowly scaling this down, with a planned acceleration from 2020 onwards.