New data reveals that the average homebuyer in the UK requires 26 months of net income to afford a 20% mortgage deposit. The situation worsens in London, where it takes over 37 months to reach the same financial milestone.
Estate and lettings agent Barrows and Forrester conducted the study, comparing net salaries against the cost of 20% mortgage deposits. In London, where the average monthly take-home pay is £2,800, residents face a staggering average deposit of £105,600. The data further highlights the widening gap between salaries and rising home prices.
The research also identified challenges in other regions. In the South East, for example, it would take 32.3 months of saving a net salary of £2,400 to afford a £78,300 deposit. Similar patterns appear in the South West and East of England, requiring 31 and 30.4 months of saving, respectively.
In contrast, areas such as the North East, Northern Ireland, and Scotland require considerably less time—approximately half that needed in London—despite lower average salaries.
James Forrester, managing director of Barrows and Forrester, emphasised the urgency of the situation: “The UK is facing an affordability crisis that impacts not just housing but also social cohesion. Even those earning competitive salaries find it increasingly difficult to afford a deposit. The government needs to act by increasing housing supply and fostering wage growth.”
