Houses are unaffordable for even the highest earners in England, new data shows, highlighting the challenge Labour faces in its push to boost housing.

Figures from the Office for National Statistics (ONS) for 2024 show that buying a home was unaffordable - with the average house price over five times higher than the average salary - for 90 per cent of earners in England.

The situation in the nation's capital was even more dire, with house prices in London deemed to be unaffordable for all income groups - even the top 10 per cent of earners.

While the new housing secretary, Steve Reed, has promised to "build, baby, build", Conservative James Cleverly has accused Labour of "killing the market" with taxes and regulation.

Years of dwindling housing supply and low building rates have contributed to sky-high house prices, while wage growth has not kept up.

"Homes are the foundations of our lives, with many of us dreaming of the security of owning our own home. But it is increasingly clear that dream is now well beyond the grasp of the average renter," said Ben Twomey, chief executive of campaigning group Generation Rent.

"Even before the cost of renting is taken into account, buying a home is unaffordable for most people. Add soaring rents into the mix and our wages become stretched so thin that there's often nothing left at the end of each month."

Meanwhile, experts from the Mortgage Advice Bureau (MAB) believe that regulatory changes made in the past year will make housing more affordable for buyers.

"While we can't dispute past statistics, the significant changes since then will tell a different story in 2025," Rachel Geddes, director of MAB, told The Independent. "These regulatory shifts and increased flexibility for lenders have created new opportunities for aspiring buyers."

Although housing affordability improved between 2023 and 2024, homes were still generally unaffordable, costing more than five times the average salary, in many parts of the UK - a trend that has continued since 2006.

Overall, house prices in Wales, Scotland and Northern Ireland were more affordable, while the average house price in England was still 7.9 times the average salary.

Last year, the average home in England sold for £290,000 - substantially higher than prices in Wales (£200,000), Scotland (£185,000), and Northern Ireland (£168,000). Meanwhile, the average salary did not see such a significant fluctuation between the four countries.

In England, average house prices were only affordable for the top 10 per cent of earners, who have salaries upwards of £72,000 a year, the ONS figures reveal.

And in London, even the highest decile of earners - with over £91,443 in household income - were priced out of affordable home ownership, the data shows.

The worsening housing market risks deepening existing inequalities, and The Independent recently reported that many people are stuck renting and unable to save for a deposit, while others are relying on the "Bank of Mum and Dad" to get on the housing ladder.

"It's become the norm for people to rely on family wealth if they can, but this only serves to widen inequality," warned Mr Twomey.

On the lowest end of the spectrum, the situation is even worse.

The bottom 10 per cent of earners in England are seeing house prices over 17 times their salary, rising to as much as 34 times their salary in London.

The average home in London sold for £527,500 last year - over three times more than the average price of a home in the North East (£165,000).

But it's not just a London problem. In the South East, East of England and South West, homes were also only affordable for the top decile of earners.

Meanwhile, the North East is the most affordable region in England, with the average price standing at five times the average income.

Overall, Blackpool was the most affordable area for homes in the UK, while the London borough of Kensington and Chelsea was the least affordable.

The UK has been struggling with high house prices for nearly two decades, with a dwindling supply of housing stock and increasing demand as the population grows. Developers have also criticised strict planning laws, which they say can hinder housebuilding. The chancellor, Rachel Reeves, has promised to overhaul the legislation.

Mr Reed has promised this week to "leave no stone unturned" in Labour's effort to build 1.6 million homes. The current government is also investing £39bn to boost affordable housebuilding. But even as these key areas see more funding, it will take years, or even a generation, before the benefits are felt.

Homes now 'unaffordable' for most people - even for some of the highest earners