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.

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.

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

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 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.

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.

Mortgage rates in the United Kingdom have been on the rise since 2022, leading to an increased cost burden for buy-to-let landlords. In August 2023, the average mortgage cost amounted to ** percent of rental income. In the same month of 2022, this figure amounted to ** percent.

Average weekly household expenditure on goods and services in the UK. Data are shown by region, age, income (including equivalised) group (deciles and quintiles), economic status, socio-economic class, housing tenure, output area classification, urban and rural areas (Great Britain only), place of purchase and household composition.

In the 4th quarter of 2024, the debt of households in the United Kingdom amounted to ***** percent of their income. This indicator shows the average level of indebtedness of the general population and their ability to repay their debts. The total value of household debt (total liabilities and loans to households) has increased annually since 2000. Debt to income ratio increased during the pandemic As we have seen here, households have been decreasing their indebtedness levels in the past years. However, the volume of new consumer lending actually soared between 2022 and 2024. Meanwhile, the growth rate of mortgages in the UK has remained lower these past years, but it has also shown an increase on amount of lending.

Indebtedness in Europe The household debt of many countries in Europe as a share of their disposable income in 2024 was over 100 percent. That was mostly the case for Northern and Western European countries, such as Norway, the Netherlands, and Denmark. Germany and Austria were some of the largest exceptions, as they were among the few countries in that part of Europe with households' debt representing less than ** percent of their income.

Households in the lower income quantiles in England in 2024 were more likely to own a household outright than to be currently buying with a mortgage. As the weekly gross income of a household goes up, so does the likelihood that it occupies a home purchased with a mortgage. Of households in the first quantile (lowest income), *** percent were buying with a mortgage, compared to **** percent in the fifth quantile (highest income).

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%.

The cost-to-income ratio of the United Kingdom (UK)-headquartered Nationwide Building Society fluctuated overall between 2011 and 2024, peaking at 75.9 percent in 2020. After declining to its lowest point in 2023 at 41.9 percent during this period, by 2024 it slightly increased and stood at 51.9 percent.

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.

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.

Due to interest rates decreasing in recent years, mortgages in the United Kingdom have become overall more affordable: In 2007, when mortgages were the least affordable, a home buyer spent on average **** percent of their income on mortgage interest and *** percent on capital repayment. In 2019, the year with the most affordable mortgages, mortgage interest accounted for *** percent and capital repayment was **** percent of their income. As interest rates increase in response to the rising inflation, mortgage affordability is expected to worsen. Though below the levels observed before 2007, the total mortgage repayment between 2022 and 2026 is expected to exceed ** percent of income.

Average loan balance at Statutory Repayment Due Date (SRDD), average loan balance at SRDD in FY2021-22 prices, average lifetime repayments in FY2021-22 prices, median years liable to repay, and proportion of loan outlay repaid in real terms of undergraduate borrowers, by lifetime decile

Cet ensemble de données contient le capital médian trimestriel et les paiements d'intérêts en pourcentage du revenu des primo-accédants en Angleterre.

Cet ensemble de données contient le capital médian trimestriel et les paiements d'intérêts en pourcentage du revenu des primo-accédants en Angleterre. Les données sont la propriété du Council of Mortgage Lenders (CML) et la publication a été autorisée à ODC.

Virgin Money UK reported AUD9.64B in Loan Capital for its fiscal semester ending in June of 2023. Data for Virgin Money UK | CYB - Loan Capital including historical, tables and charts were last updated by Trading Economics this last December in 2025.

This statistic shows the gross annual income of household reference person (HRP) and their partner in the United Kingdom in 2012, by type of tenure. In 2012, **** percent of the households with an income more than £*** per year were living in home bought with a mortgage.