Lloyds analysis indicates the UK house-price-to-earnings ratio has fallen to 7.3 times average annual earnings, its lowest level for 11 years, as wages outpace house-price growth. Proposed support through the Your First Home scheme could materially expand the number of new-build homes accessible to single first-time buyers, while Cambridge Building Society has introduced a 98% LTV option.
The picture remains nuanced. Higher mortgage rates and monthly payments can offset improved headline price-to-income affordability, and commentators have raised concerns about new-build premiums and resale or negative-equity risk. Advisers should model payment resilience, total buying costs and plausible remortgage scenarios—not simply maximum borrowing. AI-based affordability tools may improve client education, but inputs, assumptions and explanations must be transparent and adviser-checked.