Reading House Prices Hit 9.5 Times Incomes as Affordability Gap Widens
Research by Wessex Community Bank has found a growing divide between Reading's economic success and the cost of living in the town.
House prices in Reading are now around 9.5 times average household incomes, according to Reading Borough Council, while the average home costs around £350,000.
Average private rent has reached approximately £1,574 a month, while the typical first time buyer property costs around £308,000.
At the same time, Reading continues to perform strongly economically. The town has more jobs than resident workers and average annual pay for people working in Reading reached £61,467 in 2025.
But people who actually live in Reading earned considerably less on average, at £49,799.
Economic success is putting pressure on Reading housing
Reading's location, transport links and concentration of technology, insurance and professional services businesses have helped make it one of the strongest economic centres in the Thames Valley.
Reading Borough Council says there are more jobs in the town than there are workers living in the borough, reflecting its importance as an employment centre for the wider region.
But economic success also creates greater demand for housing.
As more people compete for homes close to major employers and strong transport links, local property prices and rents can move further away from the incomes of the people who already live there.
Reading can therefore be economically successful while simultaneously becoming harder for some local residents to afford.
First time buyers face a difficult calculation
Official housing data puts the average first time buyer property in Reading at approximately £308,000.
Someone buying at that price with a 10% deposit would need to find around £30,800 before legal fees, moving costs and other expenses are taken into account.
They would then still require a mortgage of around £277,000.
For households trying to build that deposit while paying average private rent of around £1,574 a month, saving enough to buy can become increasingly difficult.
Reading's high salaries only tell part of the story
One of the most revealing figures in Reading's economic data is the difference between the earnings of people who work in the town and the earnings of those who actually live there.
Average annual pay for people working in Reading reached £61,467 in 2025, while the equivalent figure for Reading residents was £49,799.
That does not mean every commuter into Reading is highly paid or that every Reading resident is struggling.
But it illustrates why headline measures of Reading's economic strength do not necessarily describe the financial position of households living within the town.
A relatively high salary can still leave limited disposable income once rent or mortgage payments, council tax, energy, transport and other essential household costs have been paid.
Wessex Community Bank research highlights the affordability gap
Analysis by Wessex Community Bank of published housing and earnings data suggests the gap between Reading's economic strength and household affordability is becoming increasingly significant.
The research brings together official housing, earnings and local authority figures to examine how Reading's economic performance translates into the finances of the people who live there.
Reading is clearly a successful town, but there is a difference between having a successful local economy and every household feeling prosperous.
Our analysis shows that housing is taking a very substantial share of the resources available to many local households. That matters because the more people spend simply putting a roof over their heads, the harder it becomes to save, build financial resilience or deal with an unexpected expense.
The important measure isn't simply what somebody earns. It is how much they have left once the essential bills have been paid.
The £61,467 Reading salary figure needs context
Wessex Community Bank's research also highlights the difference between workplace earnings and resident earnings.
The £61,467 average salary for people working in Reading needs some context. People who actually live in Reading earn considerably less on average, at £49,799.
That is an important distinction when we talk about how prosperous Reading is.
Reading is building more affordable homes
Reading Borough Council is attempting to increase the supply of affordable housing through its council house building programme.
Hundreds of new council homes have already been delivered, with further schemes planned over the coming years.
The Council's current programme aims to take the total number of new council homes delivered since 2014 to more than 800 by 2029.
The intention is to increase the number of homes available at affordable and social rents and ease some of the pressure facing residents who cannot compete in the private housing market.
Housing affordability affects more than individual households
Reading's housing problem can also have consequences for the wider local economy.
Teachers, health workers, carers, hospitality staff, retail workers, administrators and other employees need somewhere reasonably close to their workplace to live.
If housing costs move too far ahead of earnings, employers can face recruitment difficulties and workers can be pushed into longer and more expensive commutes.
Younger residents may also decide that establishing themselves elsewhere offers a better standard of living.
Over time, that can begin to weaken some of the advantages that helped Reading become economically successful in the first place.
Can Reading remain successful and affordable?
Reading's challenge is therefore not simply to continue growing.
The harder test is whether economic growth translates into better living standards for the people who live and work in the town.
Reading has high productivity, comparatively strong salaries and some of the country's best known technology and professional services employers.
But the average home costs around £350,000, average private rent is around £1,574 a month and Reading Borough Council says house prices are approximately 9.5 times household incomes.
The question for Reading is no longer simply whether its economy can continue to grow, but whether the people who make that economy work can still afford to make the town their home.
Reading Borough Council: Council Plan 2025 to 2028
Reading Borough Council: Profile of Reading
Office for National Statistics: Reading house prices and private rents