Average First Time Buyer Must Earn £41,000
By |Published On: 6th May 2015|

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Average First Time Buyer Must Earn £41,000

By |Published On: 6th May 2015|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

The average first time buyer needs to earn at least £41,000 before they can get a mortgage. This is almost double the average wage in the UK of £22,000.

KPMG released a report this week that revealed the difference between property prices and salaries has widened so much that all aspiring buyers have affordability problems, unless they have a very high wage or inherit money.

First time buyers in London have the hardest struggle getting on the housing ladder. They must earn a huge £77,000 to buy their first home, but the average worker earns just £28,000.

These numbers are based on having a 10% deposit with the remaining 90% at 4.5 times the annual income, which varies massively around the country.

The smallest gap is in Northern Ireland, with the actual average wage at £18,857, compared to the £21,219 needed. The narrowest gap in England is in the North East, with actual earnings at £20,149 to the £23,616 required.

Head of Housing at KPMG, Jan Crosby says: “These figures make for frightening reading and show that housing affordability is no longer just a problem for lower wage earners.

“Now unless you earn well above average or receive inheritance, it is unlikely you will be able to afford to buy, no matter where in the UK you live.”1 

Average First Time Buyer Must Earn £41,000

Average First Time Buyer Must Earn £41,000

What first time buyers need around the country1


Average house price for first time buyers Current median annual wage of first time buyers

Required average annual wage of first time buyers

UK £202,765 £22,044 £40,553
London £384,856 £27,999 £76,971
South East £230,049 £24,391 £46,010
South West £179,204 £20,690 £35,841
East Midlands £136,366 £20,890 £27,273
East of England £180,331 £23,271 £40,074
West Midlands £145,394 £20,431 £29,079
North East £118,081 £20,149 £23,616
North West £131,977 £20,723 £26,395
Yorkshire and Humberside £132,143 £20,223 £26,429
Wales £129,546 £20,021 £25,909
Scotland £133,938 £21,770 £26,788
Northern Ireland £106,094 £18,857 £21,219

1 http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11584347/Average-first-time-buyer-needs-41000-salary.html

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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