How much you now need to earn to buy your first home in the UK

Models of homes on coins
-Credit: (Image: PA Archive/PA Images)


The average household income that you need to buy your first property in the UK has now been revealed. According to a study by Zoopla, the typical first-time buyer now needs earnings of more than £60,000 to step onto the property ladder.

The property website says that this is £14,900 more than what was required five years ago, and £2,400 more than last year. The analysis is based on average asking prices for first-time buyer homes listed for sale on Zoopla, which are around the £250,000 mark - based on homes that people wanting to get on the property ladder are looking to buy.

The assumption is that buyers would have a 20 percent deposit and be borrowing 3.3 times their income as a mortgage. Izabella Lubowiecka, Zoopla's senior property researcher, said: "The challenges facing first-time buyers are not the same across the UK."

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She continued: "Access to home ownership requires lower incomes in much of Wales, northern England and Scotland. The greatest challenges are in southern England, especially London where first-time buyers are already buying cheaper homes than the average in an effort to try and improve affordability."

Zoopla's research revealed that in London, first-time buyers would typically need a household income of £103,000. In contrast, they would require £38,800 in Wales and £31,500 in Scotland.

These findings were published following the release of Office for National Statistics (ONS) figures earlier this week, which showed that Consumer Prices Index (CPI) inflation slowed to 2 percent in May, down from 2.3 percent in April.

A recent property tracker survey from the Building Societies Association (BSA), released on Thursday, has revealed that a significant 56 percent of people believe the deposit required to purchase a home is excessively high. This sentiment is even stronger amongst first-time buyers, with nearly two-thirds expressing this view.

London is the most expensive city for first-time buyers -Credit:Gary Yeowell / Getty Images
London is the most expensive city for first-time buyers -Credit:Gary Yeowell / Getty Images

The survey also highlighted that 68 percent of respondents see the affordability of monthly mortgage repayments as an increasing hurdle to home ownership. Additionally, 65 percent consider the challenge of raising a deposit as a major barrier to entering the property market.

Despite these concerns, the Bank of England's upcoming interest rate decision on Thursday is not expected to bring immediate relief, according to experts. Even though inflation is slowing, they predict that interest rates will likely remain at the current level of 5.25 percent.

Paul Broadhead, head of mortgage and housing policy at the BSA, commented: "Borrowers will be disappointed that the bank rate is expected to remain unchanged today, as a cut would have provided a little much-needed optimism to homeowners and first-time buyers."

The findings are based on a YouGov survey conducted in June, which polled over 2,000 individuals across Britain for the BSA.