Headline evidence · Cost of living · England and UK
Work full time. Keep just 30p of every £1 to live on.
On typical full-time pay, paying the average rent and saving for a first home takes 70p of every £1 you take home. 30 years ago it took 52p. For renters and first-time buyers, living costs have soared. For those who already own their home, they have not.
- Geography
- UK
- Evidence period
- 1996 and 2025
- Evidence status
- UK Facts worked example from official statistics
- Editorial review
- Reviewed 29 October 2026
Go straight to a question
The short version
Four lives. Four different pressures.
Renting on one wage
What is left after rent on one pay packet?
Example: Alex, who earns £32,000 a year. −£113 a month after bills and debts
Explore this life →
Saving to buy
How far does a second income go towards a deposit?
Example: Amir & Sana, who earn £65,000 a year between them. £1,534 a month after bills and debts
Explore this life →
Paying a mortgage
What does a mortgage at today’s rates leave?
Example: Marcus & Helen, who earn £60,000 a year between them. £770 a month after bills and debts
Explore this life →
Owning outright
What does life cost once the home is paid off?
Example: Paul & Stacey, who live on two State Pensions and £9,000 a year of private pensions. £1,267 a month after bills and debts
Explore this life →
Each card is a full monthly budget, after rent or mortgage, bills and debts: four of the seven example households. The headline is different: one person on typical full-time pay, before bills.
Fictional examples. Photographs are AI-generated, not the people described.
- 30 years ago (1996)
Rent 32p, saving 20p, left to live on 48p of each £1.
Take-home pay £971 a month · average rent £310 a month
- Now (2025)
Rent 50p, saving 20p, left to live on 30p of each £1.
Take-home pay £2,685 a month · average rent £1,345 a month
A monthly budget while renting and saving, before bills, food and travel come out of what is left. The saving rate is the same in both years, so the whole difference is rent. Someone renting a cheaper home, sharing, or living with family keeps more. ONS measures rent differently, against a renting household’s income before tax, which often includes a second earner: 36% in England (2023-24). How the example works
What it means. Rent now takes 50p of every £1 a typical full-time worker takes home, against 32p 30 years ago. Put a fifth aside for a deposit and 30p is left for bills, food, travel and everything else, against 48p. People who already own their home escape most of that; renters and first-time buyers carry it.
- 1997
- 3.5 times
- 2025
- 7.6 times
A purchase price against one person’s pay, not a monthly cost: it leaves out mortgage rates and deposits. Source: Office for National Statistics, Housing affordability in England and Wales (Table 1c).
Budget 2026 · 28 October 2026
What the Budget means for cost of living
8
Budget measures on this topic
£4.3bn
Net cost, 2026–27
£215m
Net saving or gain, 2029–30
Biggest single-year effect of each measure · red costs money, teal saves or raises it
- Household Energy Payment2026–27−£2.6bn
- Fuel Duty2027–28−£780m
- Support for Energy Bills2026–27−£755m
- First Time Buyer ISA2031–32+£235m
- Student Loans2026–27−£230m
- Bus Fares2027–28−£180m
−£2.6bn
cost in 2026–27
Household Energy Payment
−£780m
cost in 2027–28
Fuel Duty
−£755m
cost in 2026–27
Support for Energy Bills
All 8 measures on this topic
+£235m
saving or gain in 2031–32
First Time Buyer ISA
−£230m
cost in 2026–27
Student Loans
−£180m
cost in 2027–28
Bus Fares
−£150m
cost in 2029–30
Pension Tax Allowance
+£95m
saving or gain in 2028–29
Your First Home
Treasury costings certified by the OBR, not measured results. Topic links are UK Facts’ classification.
The evidence
How we compare
- The same life, 30 years ago and now. One person on the typical full-time wage, after tax, who rents, saves for a deposit, buys the average home and spends the rest the way an average household did.
- Against pay, not prices. Something is heavier only if it rose faster than take-home pay, which is 2.8 times what it was. Food prices went up, but more slowly than pay, so food is lighter.
- So £1 of pay then and £1 of pay now are compared on equal terms. Every figure below is read that way. These are worked examples, not any real household’s budget.
Two ways of counting the same life
- Month by month (the chart above): while renting and saving for a deposit, 30p of each £1 is left for everything else, against 48p 30 years ago.
- The whole route to owning (the figures below): the home, spread over the years it took 30 years ago, plus everything else, now takes £128 of take-home pay for every £100 it took then. That is the +28%.
- Pay against average prices (the economy page): typical pay buys 26% more than 30 years ago. That is true too, but it is before tax and leaves out the cost of buying a home.
+28%
The whole cost of living
What took £100 of take-home pay 30 years ago takes £128 today.
10 → 20 years
The home, in years of take-home pay
Modelled: rent while you save, the deposit and every mortgage payment.
15% lighter
Everything except the home, against pay
Bills are heavier; food, goods and clothes are lighter, so together they take less of take-home pay than 30 years ago.
How the example works
One median full-time earner, then and now: £301 a week in 1996 and £767 in 2025, before tax. After income tax and National Insurance that is £11,647 and £32,221 a year. They rent while saving a fifth of take-home pay, buy the average home (a 10% deposit and 25-year mortgage then; a loan of 4.5 times pay over 35 years now), and spend the rest of each £1 the way the average household did 30 years ago, priced today. Range +24% to +38%. Method, step by step · Download the data (JSON)
UK · 1996 and 2025 data · one median full-time earner, after tax · the same life both times. A modelled comparison, not an annual or monthly budget: the home is the whole route to owning (rent while saving, the deposit and every mortgage payment), spread over the same period, the 27 years it took 30 years ago. On that basis the home is 37p of each £1 30 years ago and 74p now. Today’s bars add up to £1.28, not £1: the same life takes 28% more of take-home pay. This is not the monthly budget in the headline.
- The home: rent while saving, deposit, mortgage74.5p
- Gas and electricity4.0p
- Council Tax2.8p
- Phones, TV and internet2.2p
- Water and sewerage0.8p
- Repairs and home insurance1.5p
- Leisure and going out10.0p
- Motoring and fares10.0p
- Food and drink9.8p
- Clothes, alcohol and tobacco6.2p
- Health and other2.3p
- Household goods4.2p
View the figures as a table
| Line | 30 years ago (1996) | Now | Change | Effect |
|---|---|---|---|---|
| The home: rent while saving, deposit, mortgage | 36.6p | 74.5p | +103% | +37.8p |
| Gas and electricity | 3.0p | 4.0p | +36% | +1.1p |
| Council Tax | 2.2p | 2.8p | +28% | +0.6p |
| Phones, TV and internet | 1.9p | 2.2p | +14% | +0.3p |
| Water and sewerage | 0.8p | 0.8p | −1% | −0.0p |
| Repairs and home insurance | 1.5p | 1.5p | −5% | −0.1p |
| Leisure and going out | 10.6p | 10.0p | −6% | −0.6p |
| Motoring and fares | 11.1p | 10.0p | −10% | −1.1p |
| Food and drink | 12.6p | 9.8p | −22% | −2.8p |
| Clothes, alcohol and tobacco | 8.5p | 6.2p | −27% | −2.3p |
| Health and other | 3.3p | 2.3p | −30% | −1.0p |
| Household goods | 7.9p | 4.2p | −47% | −3.7p |
Buying a home now takes twice as much of your pay
Owning the average home cost 10.0 years of take-home pay 30 years ago, counting the rent paid while saving, the deposit and every mortgage payment. Now it costs 20.3 years. The deposit takes 13.6 years to save instead of 2.3, and the whole route takes about 49 years instead of 27.
The monthly mortgage payment looks no heavier (33% of take-home pay then, 31% now) only because today’s loan runs for 35 years instead of 25 and rates are lower. Rent has gone from 32% to 50% of take-home pay.
2.3 years saving, then 25 years paying: about 27 years in all.
13.6 years saving, then 35 years paying: about 49 years in all.
Saving the depositPaying the mortgage
| 30 years ago (1996) | Now | Against pay | |
|---|---|---|---|
| Private rent, a month | £310 | £1,345 | 1.57 |
| Deposit | £5,342 | £87,897 | 5.95 |
| Monthly mortgage payment | £319 | £826 | 0.94 |
| Price of the average home | £53,415 | £267,281 | 1.81 |
The same gas and electricity costs 3.7 times what it did 30 years ago. Take-home pay rose 2.8 times.
The same amount of gas and electricity cost £593 a year 30 years ago and £2,225 now, so it takes 36% more of take-home pay. Homes now use less: at what they actually use, the bill is about £1,668 a year, 10% lighter than pay. Ofgem’s price cap at today’s typical use is £1,723 a year (Oct–Dec 2026). When bills outrun pay, households on low incomes are the first to choose between heating and eating. In England 2.36 million households (9.4%) were in fuel poverty in 2025. Council Tax (+28%) and phones and internet (+14%) are heavier on pay too.
What got dearer than your pay, and what did not
Each bar is how many times dearer the item is than 30 years ago. The line is take-home pay (×2.8). A bar past the line is heavier on your pay.
- TV licence×1.9 · lighter
- Rail, revenue per journey×2.0 · lighter
- Food (Family Food unit values)×2.2 · lighter
- Petrol×2.4 · lighter
- Cinema ticket×2.4 · lighter
- Sliced white loaf, 800g×2.5 · lighter
- Water and sewerage×2.7 · about the same
- Council Tax (Band D)×3.5 · heavier
- Gas and electricity, same energy×3.7 · heavier
- Buying the home: deposit and every payment×4.0 · heavier
- Private rent×4.3 · heavier
- Price of the average home×5.0 · heavier
What each figure compares
- TV licence: ×1.9, which is 0.70 times the rise in pay. Colour licence, 1996 and 2025-26.
- Rail, revenue per journey: ×2.0, which is 0.73 times the rise in pay. 1996-97 to 2024-25. An average across ticket types, not a fare.
- Food (Family Food unit values): ×2.2, which is 0.78 times the rise in pay. Spending ÷ quantity; includes changes in what people buy.
- Petrol: ×2.4, which is 0.86 times the rise in pay. Full-year means, DESNZ.
- Cinema ticket: ×2.4, which is 0.88 times the rise in pay. Box office ÷ admissions.
- Sliced white loaf, 800g: ×2.5, which is 0.92 times the rise in pay. ONS average price, January 2025.
- Water and sewerage: ×2.7, which is 0.99 times the rise in pay. Average bill; 2025-26 is a forecast.
- Council Tax (Band D): ×3.5, which is 1.28 times the rise in pay. England.
- Gas and electricity, same energy: ×3.7, which is 1.36 times the rise in pay. 1996 consumption held constant.
- Buying the home: deposit and every payment: ×4.0, which is 1.46 times the rise in pay. Not counting rent while saving.
- Private rent: ×4.3, which is 1.57 times the rise in pay. Survey figure for 1996; ONS index mean for 2025.
- Price of the average home: ×5.0, which is 1.81 times the rise in pay. UK House Price Index.
Food (−22% against pay) and household goods (−47%) are lighter, though goods and clothes use price indices that count better quality as a lower price, so treat them as a range.
Lower-income households have seen bigger price rises since 2008
Since Jan 2008, the official household cost measure rose 82.3% for the 10% of households with the lowest incomes and 72.3% for the 10% with the highest. In the past year the rates were about the same.
| Household group | Year to Jun 2026 | Jan 2008 to Jun 2026 |
|---|---|---|
| Lowest-income tenth | 2.7% | +82.3% |
| Highest-income tenth | 2.8% | +72.3% |
| Social and other renters | 2.7% | +85.1% |
| Private renters | 3.0% | +72.3% |
| Mortgage holders and other owners | 2.8% | +70.6% |
| Outright owners | 2.6% | +80.3% |
| All households | Not shown | +76.0% |
Source: ONS Household Costs Indices for UK household groups, April to June 2026, published 2026-08-28. Official statistics in development; the latest month is provisional.
UK · April 2024 to March 2025 · households grouped by income after tax and benefits · share of all spending · survey estimates. Hover a band to see who is in it.
- Under £24,80041%
- £24,800 to £35,60035%
- £35,600 to £46,90031%
- £46,900 to £64,20026%
- Over £64,20020%
View the figures as a table
| Household income after tax, a year (couple) | All spending a week | Food | Housing, fuel, power | Share of spending | Households in sample |
|---|---|---|---|---|---|
| Under £24,800 | £407 | £62 (15.2%) | £105 (25.7%) | 40.9% | ≈970 |
| £24,800 to £35,600 | £511 | £68 (13.2%) | £113 (22.1%) | 35.4% | ≈1,010 |
| £35,600 to £46,900 | £641 | £75 (11.6%) | £124 (19.3%) | 30.9% | ≈1,040 |
| £46,900 to £64,200 | £740 | £79 (10.7%) | £117 (15.8%) | 26.4% | ≈1,030 |
| Over £64,200 | £1084 | £86 (7.9%) | £134 (12.3%) | 20.2% | ≈940 |
Households on under £24,800 spend 41% of their budget on these basics; those on over £64,200 spend 20%. Housing here leaves out mortgage payments and Council Tax. Source: ONS Family spending in the UK: April 2024 to March 2025. Where the money goes →
Why it is happening
- Homes cost more against pay. The average home’s price is 5.0 times what it was; gross pay is 2.5 times.
- Rent rose faster than pay. Rent is 4.3 times what it was, so saving a deposit while renting takes far longer.
- The deposit grew most. Lenders cap loans at about 4.5 times pay, so the rest of a much higher price has to be saved: 16.5 times the old deposit.
- Lower rates held the monthly payment steady, at the cost of longer loans.
- Energy and Council Tax rose faster than pay; world energy prices and local funding pressures are the main drivers. Food, petrol and most goods rose more slowly.
- Why house prices and rents rose (supply, rates, lending rules, demand) is covered on buying, supply and renting.
Who is affected most
Am I better off than 30 years ago? It depends who you are
Most households have more to live on after housing costs than in the mid-1990s: on the official income survey, the typical household’s income after rent or mortgage is up 64% after inflation (1994–95 to 2024–25; the survey method changed in 2021-22). The gains went mostly to people who already had a home. Those still to get one carry the cost: home ownership among 25 to 34 year olds in England fell from 59% in 2003-04 to 48% in 2024-25, and each income fifth is about 5.7 million households, with the lowest spending 41% of their budget on the basics.
Who has gained
- People who own their home outright. With no rent or mortgage, everything else takes 15% less of their pay than 30 years ago.
- People who bought decades ago. They paid a price set against old pay. The average home is now worth 5.0 times what it cost, while take-home pay is 2.8 times.
Who is paying
- Private renters. Average rent takes 50% of typical take-home pay, up from 32%.
- First-time buyers. A deposit takes 13.6 years to save, not 2.3.
- Young adults. Home ownership at 25 to 34 fell from 59% to 48% in England.
- The lowest-income households. Their prices rose 82.3% since Jan 2008, against 72.3% for the highest, and basics take 41% of their spending.
Kyle, 24
Low pay · lives alone · renting
Worse off than 30 years ago
+57%
more of his take-home pay goes on rent than for someone in his place 30 years ago
Kyle works full time in a warehouse on about £23,918 a year, close to the National Living Wage. He rents on his own and is trying to save. The same job, at the same point in the pay scale, paid £9,394 30 years ago. His pay has risen about 2.8 times. The average rent has risen 4.3 times.
Measure 30 years ago Now Take-home pay, a month £626 £1,728 Average private rent, a month £310 £1,345 Rent as a share of take-home pay 50% 78% Budget 2026 · How does it help me?
The Treasury estimates households in income group 3 of 10 (1 is the lowest) gain about £70 a year on average (2027-28), counting tax, benefits and public services.
- Support for Energy Bills: No VAT on his electricity from October 2026 to July 2027.
- Bus Fares: Single bus fares capped at £2 outside London for a year from January 2027, if he takes the bus to work.
- Your First Home: A new equity loan for first-time buyers from April 2027, once he has a deposit.
What this leaves out
Rent is the UK average for all private lets, including London, set against one person's pay. Many people on low pay share a home to bring this down. Kyle has no help from benefits in this example.
The Budget figure is the Treasury’s average for households with a similar income and make-up, not this person’s exact gain.
Chloe, 33
Middle pay · new baby · renting and saving to buy
Worse off than 30 years ago
+28%
more of her take-home pay for the same life as 30 years ago
Chloe is a nurse on the typical full-time wage, £39,863 a year (April 2025). She has just had her first baby and wants to buy. To save a deposit on the average home she needs 13.6 years, not 2.3. Owning it takes about 49 years from her first saving, not 27.
Measure 30 years ago Now Years of take-home pay to own the average home 10.0 20.3 Deposit £5,342 £87,897 The home, pence in each £1 (modelled, spread over the years to own) 37p 74p Budget 2026 · How does it help me?
The Treasury estimates households in income group 5 of 10 (1 is the lowest) gain about £43 a year on average (2027-28), counting tax, benefits and public services.
- Your First Home: A new equity loan for first-time buyers from April 2027 could cut the deposit she needs.
- Household Energy Payment: £100 off council tax from January 2027 if her rented home is in bands A to D.
- Support for Energy Bills: No VAT on electricity from October 2026 to July 2027.
What this leaves out
One earner, no help from family. Childcare is not in the model, so for Chloe the real squeeze is larger. Range +24% to +38% on other lending limits and price indices.
The Budget figure is the Treasury’s average for households with a similar income and make-up, not this person’s exact gain.
Richard, 58
Higher income · owns his home outright · runs two businesses
Better off than 30 years ago
−15%
change in what everything except the home takes from his pay, against 30 years ago
Richard bought the average home for £53,415 30 years ago, with a 10% deposit. The mortgage is paid off, and the same home is now worth about £267,281. With no rent or mortgage, the bills, food and goods of that life take less of his pay than they did. Energy and Council Tax are the exceptions.
Measure 30 years ago Now Price of the average home £53,415 £267,281 Rent or mortgage, a month £319 £0 Everything else, pence in each £1 (same modelled comparison) 63p 54p Budget 2026 · How does it help me?
The Treasury estimates the 10% with the highest incomes lose about £105 a year on average (2027-28), counting tax, benefits and public services.
- Business Asset Disposal Relief (BADR): A tax rise for him if he sells a business: from April 2027 the lower tax rate on selling a business covers only the first £500,000 of gains in his lifetime.
- Support for Energy Bills: No VAT on electricity from October 2026 to July 2027.
- Cash ISAs: He can keep putting £20,000 a year into a cash ISA.
What this leaves out
The everything-else figure is for a median earner's basket. A higher earner spends more, but the direction is the same: without housing costs, most of the basket rose more slowly than pay. The gain in the home's value is wealth, not spending money.
The Budget figure is the Treasury’s average for households with a similar income and make-up, not this person’s exact gain.
Meet seven more households, with their bills, debts and what Budget 2026 means for them →
What could change
Proposals to consider. The bodies named below would need to agree to deliver them; responsibility is not a recorded commitment. Follow the links for costs and evidence.
The home
The home is the biggest difference. These options target the supply of homes, families without a settled home, and renters at risk of losing one.
Turn housing permissions into completed homes
Focus on getting homes built after planning permission is granted.
Who could deliver it: Planning authorities, housing bodies, developers and utilities; devolved responsibility.
Main trade-off and delivery needs
Binding construction/infrastructure constraints; environmental and displacement harms.
Select sites; resolve land, planning, utilities, transport and viability; commission tenure mix and delivery agreements.
Cost: The extra cost is not yet known.
Costs, drawbacks and evidence →Give families in temporary accommodation a settled home
Use social-housing funding to provide settled homes for families in temporary accommodation.
Who could deliver it: Councils and housing providers; relevant national housing bodies.
Main trade-off and delivery needs
Competition with other buyers; displacement; unsuitable location/condition.
Define families and locations; compare acquisition, lease and new build; inspect standards; secure lettings and tenancy support.
Cost: Only part of the cost has been estimated.
Costs, drawbacks and evidence →Prevent avoidable loss of rented homes
Test whether early help with rent arrears and legal advice prevents people losing their homes.
Who could deliver it: councils, housing/advice providers and landlords.
Main trade-off and delivery needs
The main risks still need to be assessed.
Define arrears/risk trigger, legal advice and assistance design; cost staff, grants and sustained tenancies. Assess additional prevention against existing duties. Proposed owners: councils, housing/advice providers and landlords.
Cost: The extra cost is not yet known.
Costs, drawbacks and evidence →Helping first-time buyers with the deposit
Not yet assessed
The new first-time buyer scheme is a government announcement with details still pending. Its effect on the deposit wait has not been assessed.
Housing proposals and what is still unknown →
The bills
Energy is the biggest bill that has risen faster than pay. These options target energy supply, home efficiency and how the networks are financed.
Warm homes, inspected before payment
Improve insulation, heating and ventilation for households most in need. Survey homes first and check the finished work.
Who could deliver it: Energy/housing departments, councils and installers.
Main trade-off and delivery needs
Damp, overheating, defects and installer constraints; inspection is not a guarantee.
Target poor-quality homes; survey suitability/ventilation; use qualified installers and independent inspection; establish redress.
Cost: Only part of the cost has been estimated.
Costs, drawbacks and evidence →Connect the power Britain needs
Improve electricity connections and power supply for industry.
Who could deliver it: Energy departments, system/network operators and regulators.
Main trade-off and delivery needs
Binding specialist/kit constraints; moving charges to households; stranded assets.
Separate queue management, network reinforcement and industrial levies; identify projects, kit, engineers and regulator decisions.
Cost: The extra cost is not yet known.
Costs, drawbacks and evidence →Change how utilities fund investment and share the risks
Reduce excessive financing costs in essential services and make shareholders bear the cost of failure.
Who could deliver it: Sector regulators, Treasury, relevant departments and infrastructure bodies.
Main trade-off and delivery needs
Underinvestment, legal disputes and transferred taxpayer risk; no additive headline saving.
Separate sectors and instruments; assess legal/regulatory powers, financing, compensation, investment and service quality.
Cost: The extra cost is not yet known.
Costs, drawbacks and evidence →Council Tax and water bills
Not yet assessed
No assessed option for Council Tax or water bills is linked from this page yet. Council Tax rose faster than pay in the figures here, and water about kept pace.
See coverage and gaps →
Pay and work
Living costs are set against pay. These options target the long-run drivers of pay: work, investment and childcare.
Offer evidence-based employment support alongside healthcare
Link employment support with healthcare and test whether it helps people into work.
Who could deliver it: the Department for Work and Pensions, health commissioners and local employment partners.
Main trade-off and delivery needs
Clinical displacement; unsuitable pressure to work; variable fidelity.
Specify cohort and voluntary offer; secure clinical referrals, trained employment specialists, employer links and linked-data evaluation.
Cost: Only part of the cost has been estimated.
Costs, drawbacks and evidence →Turn investment promises into a deliverable pipeline
Publish which investment projects are funded, when they should finish and what has actually been built.
Who could deliver it: Treasury, infrastructure bodies, departments and devolved governments.
Main trade-off and delivery needs
Double-counting housing/grid benefits; shared workforce bottlenecks.
Distinguish funded projects from aspirations; sequence resources; name owners and independent assurance; protect maintenance.
Cost: Only part of the cost has been estimated.
Costs, drawbacks and evidence →Make childcare places work for working parents
Add childcare places and hours where local shortages stop parents working.
Who could deliver it: councils, education departments and providers in England; separate devolved arrangements.
Main trade-off and delivery needs
The main risks still need to be assessed.
Verify unmet demand, existing awards and provider viability; cost places, workforce, premises, operating subsidy and parental fees. Track access and sustained parental work. Proposed owners: councils, DfE and providers in England; separate devolved arrangements.
Cost: The extra cost is not yet known.
Costs, drawbacks and evidence →
Compare the national action plan. Some problems have no assessed solution yet: see coverage and gaps.
Help and rights
These links can help with an individual situation. They do not resolve the wider pressures described above.
- Check your rights as a private renter
GOV.UK guidance covers tenancy types, repairs, deposits and complaints. Use the guidance that applies to your tenancy and nation.
- Check possible benefit entitlement
These independent calculators estimate possible support. Check their exclusions; an estimate is not an award.
- Plan your budget
MoneyHelper’s free budget planner shows where your money goes. It is a planning tool, not advice on any one product.
Domain SWOT
Recorded
Show the findings
Strengths · 2 findings
Leave out the home and the rest of life takes less of take-home pay than 30 years ago: 63p in every £1 then, 54p now. Food takes 22% less of pay and household goods 47% less. This is a worked example for one median full-time earner.
United Kingdom (worked example) · 1996 and 2025 · our synthesis
Every income fifth has more to live on after housing costs than in 1994-95, after inflation: up between 54% and 80% by 2024-25. The survey method changed in 2021-22, so the change spans a series break.
United Kingdom (Great Britain before 2002-03) · 1994-95 to 2024-25
Weaknesses · 5 findings
For a median full-time earner who rents while saving and then buys the average home, the home now takes 74p of every £1 of take-home pay. 30 years ago it took 37p. This is a worked example under stated assumptions, not every household.
United Kingdom (worked example) · 1996 and 2025 · our synthesis
Saving the deposit for the average home takes about 13.6 years of saving now, against 2.3 years 30 years ago, on the same saving rate. The deposit rose from £5,342 to £87,897.
United Kingdom (worked example) · 1996 and 2025 · our synthesis
Renting the average private home takes 50% of a median full-time earner’s take-home pay, against 32% 30 years ago. The two years come from different rent sources, so the comparison is approximate.
United Kingdom (worked example) · 1996-97 and 2025 · our synthesis
Home ownership among households headed by 25 to 34 year olds fell from 58.6% in 2003-04 to 47.7% in 2024-25. Young adults still living with parents are not counted, so the fall in young people with a home of their own may be larger.
England · 2003-04 to 2024-25
The same amount of gas and electricity cost £593 a year 30 years ago and £2,225 now. Against take-home pay that is 36% heavier. When bills outrun pay, low-income households are the first to choose between heating and eating.
United Kingdom (GB price cap for 2025) · 1996 and 2025 · our synthesis
Opportunities · 2 findings
Because the home is nearly all of the rise, anything that brings house prices and rents closer to pay would do more for the next generation of buyers than cuts to other bills.
Depends on: Depends on more homes being completed where prices are furthest from earnings, and on lending and interest rates; the size of any effect on the home share has not been assessed.
United Kingdom · our synthesis
Using less energy to keep the same home warm lowers the one large bill that has outrun pay, whatever happens to prices.
Depends on: Depends on quality-assured insulation and heating work reaching low-income households in inefficient homes; measured savings vary from home to home.
Great Britain · our synthesis
Threats · 2 findings
If house prices and rents keep rising faster than take-home pay, the cost falls on people who have not yet bought, mostly younger adults and renters, while outright owners are largely shielded. The gap between those with a home and those without can keep widening.
United Kingdom · risk
Another rise in the energy price cap would hit low-income households in inefficient homes hardest. About 2.36 million households in England (9.4%) were projected to be in fuel poverty in 2025; this is a DESNZ projection, not a final survey count.
England (fuel poverty); Great Britain (price cap) · risk
Domain action plan
ProposedAn editorial order, not government policy or a set of deadlines.
Delivery steps and owners (3)
- Prerequisite: Keep quality-assured work on cold, inefficient homes of low-income households going, and measure bills and warmth afterwards (Energy option A18, a funded programme). · DESNZ, councils, housing providers and installers · proposed · Short term — proposed sequence
- Decision: Assess the combined effect of the housing and energy options on what a household has left after essentials, and assess options for rent and the deposit wait, which have none. · HM Treasury with MHCLG and DESNZ, and independent evaluators · proposed · Medium term — proposed sequence
- Result: Judge progress by the share of take-home pay the home and the bills take for someone not yet on the ladder, alongside home ownership among 25 to 34 year olds. · Independent evaluators · proposed · Long term — proposed sequence
Sources, method and changes
Sources, checks and limitations
The evidence line at the top of this page, in full
- Geography
- United Kingdom for the headline, the worked example and the income-group figures; England for the house price to earnings ratio and the example households
- Evidence period
- 1996 and 2025 for the headline and the worked example; 1997 and 2025 for the house price to earnings ratio; 2026/27 tax and benefit rules for the example households
- Evidence status
- Headline: a UK Facts worked example for one median full-time earner (ONS pay, average private rent, a fifth of take-home pay saved for a deposit). Checked against the official ONS house price to earnings ratio. Example households are fictional, built from official rules and stated assumptions
- Editorial review
- 29 October 2026
The comparison uses 1996 and 2025 data; headlines say “30 years ago” so they do not date. Pay: ONS earnings series (1996) and Annual Survey of Hours and Earnings 2025 (provisional). Homes: UK House Price Index. Rates: Bank of England. Bills: DESNZ, Ofgem, MHCLG. Spending weights: Family Expenditure Survey 1996-97 and ONS Family Spending 2024-25. Income after housing costs: DWP Households Below Average Income. Every input, its grade (A to D) and its check is on the method page.
The headline is a worked example for one median earner who rents, saves and buys. It is not a figure for every household. People named on this page are examples built from official figures, not real people. The page does not appraise any policy or give a value-for-money figure (“not costed”). Income bands are published Family Spending boundaries, converted from weekly to yearly and rounded to £100.
Corrections & changes
1 November 2026: figures that other pages also show are now named (D28). The energy card gives the same energy as 30 years ago, what homes use now and Ofgem’s cap. The rent chart notes the ONS measure, which is set against household income before tax. John’s story on the economy pages and the housing page’s deposit link back here, saying which measure each uses. Not approved or deployed to production.
1 November 2026: one story under the headline (D27). “Two ways of counting the same life” now sits in How we compare, setting the monthly 30p beside the whole-route +28% and the economy page’s 26%. Everything except the home is shown as 15% lighter against pay instead of pence, and the £1 chart says its bars add up to £1.28. The four example lives show what each household earns. Not approved or deployed to production.
31 October 2026: the headline now gives what is left of each £1 of take-home pay while renting and saving for a first home (30p now, 48p 30 years ago), owner decision D26. It replaces “The cost of living depends on the life you lead.” (D22); the ONS house price to earnings ratio stays as a check. Added “How we compare” and “Who has gained / Who is paying”. The street photograph was removed from the banner. Not approved or deployed to production.
29 October 2026: the page now leads with the whole cost of the same life against take-home pay, led by the home (owner direction, decision D47). Headlines say “30 years ago” instead of naming the year; income groups are described by income in pounds; Kyle, Chloe and Richard show who is better and worse off; the old Living standards page’s households moved to Who is affected. Not approved or deployed to production.
24 October 2026: led with income-group spending (decision D38), now the evidence section. 20 October 2026: first draft; released 3 November 2026.