House price to earnings ratios
House price to earnings ratios are an indicator of the relative affordability of housing for residents in the area where they live. Lower ratios tend to suggest greater affordability but may indicate lower earnings, reduced purchasing power and/or lower demand an area. Higher ratios tend to indicate less affordable housing, greater demand and difficulty for households to get onto the property ladder.
The median house price to earnings ratio uses the middle house price value and earnings based on where a person lives to provide a measure of average relative affordability. The lower quartile house price to earnings ratio uses the lowest quarter house price value and earnings to provide a measure of affordability for people wishing to enter the housing market, who are more likely to have lower earnings and purchase lower value properties.
The latest figures are for 2024.
Median house prices to earnings ratio
The median house price to earnings ratio in Lancashire-12 was 5.22 (England = 7.71). All areas in Lancashire-12 had a median house price to earnings ratio below England, indicating greater relative affordability in Lancashire-12 compared to England overall.
The highest median house price to earnings ratio was in Ribble Valley (6.43), followed by West Lancashire (6.24), and Fylde (6.03). These areas were all above the ratio for the North West (5.84). Burnley (3.67) and Hyndburn (4.07) had the lowest ratios.
Compared to the previous year, the median house price to earnings ratio in Lancashire-12 decreased from 5.87 in 2023 (England = 8.41). This decrease in the ratio indicates greater relative affordability.
Lower quartile house prices to earnings ratio
The lower quartile house price to earnings ratio in Lancashire-12 was 4.85 (England = 6.79). This was lower than the median house price to earnings ratio in Lancashire-12, indicating that relative affordability is greater for those wishing to enter the housing market.
The highest lower quartile house price to earnings ratio was in West Lancashire (6.06), followed by Ribble Valley (6.02), Fylde (5.68), Lancaster (5.66), and South Ribble (5.60). These areas were all above the ratio for the North West (5.41).
The smallest lower quartile house price to earnings ratios were in Burnley (2.86), Hyndburn (3.56) and Pendle (3.58). These districts of have around 60% of their dwelling stock in Council Tax Band 'A' (see the Lancashire Insight council tax band article). Greater affordability in the housing market for the lower paid may therefore be expected, though not all of these properties are owned, or being purchased, by the resident (see the Lancashire Insight dwelling stock by tenure article).
In the majority of areas, the lower quartile ratio was lower than the median ratio figure. In contrast, lower value properties were relatively less affordable amongst lower earners in South Ribble (lower quartile ratio = 5.60, median ratio = 5.28) and Wyre (lower quartile ratio = 5.33, median ratio = 4.99).
Compared to the previous year, the lower quartile house price to earnings ratio in Lancashire-12 decreased from 5.35 in 2023 (England = 7.45). This decrease in the ratio indicates greater relative affordability.
Source: House price to residence-based earnings ratio from the Office for National Statistics (ONS).
Things to know about the data
The house price to residence-based earnings ratio figures are released annually by the Office for National Statistics (ONS).
House price data are based on the house price statistics for small areas (HPSSAs) release, produced by the ONS, which gives the price of all dwellings sold and registered in a given year in each area. These figures are calculated using data from the Land Registry.
Earnings data are the residence-based gross annual (or annualised weekly earnings where annual figures are not available) for full-time employees based on the annual survey of hours and earnings (ASHE) produced by the ONS.
Limitations
Earnings data for some areas are annualised weekly earnings (where annual earnings data are not available) and so care should be taken when viewing earnings data and associated housing affordability ratios for these areas.
The house price figures are the values of houses sold in a given year, rather than estimates of all house values in that local authority. Since the number, and type, of properties sold may vary considerably from year to year, the ratios may fluctuate as a result.
The house price to earnings ratio is based on a single individual's earnings compared to the price of a house. Since many households contain more than one earner, these ratios may overstate the extent of affordability difficulties for households overall.
Page updated 29 December 2025