This interactive report synthesizes historical data to examine affordability. While nominal wages have risen, the purchasing power relative to assets (specifically housing) has decoupled. Use the toggle above to switch between a Single Individual and a Couple to see how shared costs impact the data.
1. The Great Decoupling
The relationship between earnings and property prices over 60 years.
Income vs. Property Price Gap
*Note: 1995 represents a post-crash market, offering historically high affordability. 2025 represents the cumulative effect of asset inflation outpacing wage growth.
2. The Wallet Share
How the composition of monthly expenses has shifted. Notice the inversion of "Food" and "Housing" costs. While food has become relatively cheaper, housing and taxes consume a much larger share of the modern wallet.
Monthly Expenditure Breakdown (% of Gross Income)
1965: The Food Burden
Food accounted for nearly 25-30% of household income. Supply chains were less efficient. However, housing costs (rent or mortgage) rarely exceeded 15% of income.
1995: The Balanced Era
The "Goldilocks" period for purchasing power. Food prices had dropped due to supermarkets/globalization, and housing was momentarily affordable after the early 90s crash.
2025: The Fixed Cost Squeeze
Essential fixed costs (Housing, Energy, Transport, Tax) now consume over 75% of the average income, leaving very little margin for savings or error.
3. "Big Ticket" Deep Dive
Comparing the affordability of specific life milestones and essential services.
Years of Income Required to Purchase Assets
4. The Childcare Cliff
For families, the most dramatic shift is the commodification of care. In 1965 and 1995, typical models relied on single-earner households or extended family. In 2025, dual income is often mandatory to pay the mortgage, necessitating expensive private childcare.
The "Second Mortgage"
In 2025, full-time childcare for one child under 2 averages £14,000+ per year. For a median earner, this is nearly 50% of take-home pay.
- ✓ 1965: Largely informal/family care. Low financial cost.
- ✓ 1995: Rising workforce participation, moderate costs.
- ⚠️ 2025: High regulation, high cost. Requires dual income to sustain.
Healthcare & Dentistry
While the NHS remains free at point of use, access to NHS dentistry has collapsed in 2025 compared to 1995. Many households now budget for private dental plans or "pay as you go" treatments, adding a new line item to the budget.
Tax Burden
Fiscal drag (frozen tax thresholds) in the 2020s means average earners pay a higher effective tax rate than in 1995, despite headline rates appearing similar.