The gap between average salaries and the amount needed to secure a mortgage on a first home has been laid bare by new analysis for The Independent.
Figures from Joseph Lane at brokers Mortgage Lane reveals the salary needed to buy the average first home across seven big UK cities and shows that while scraping together a deposit remains a tough ask for many, it is far from the only problem they face.
A London buyer would need to earn approximately £94,200 to purchase the average first home, assuming a lender will allow them to borrow 4.5 times their salary.
Government figures show the average salary in the capital is around £40,000, which leaves even a double-income couple on average pay below the threshold for a mortgage, even with a 10 per cent deposit.
Buyers in Bristol require around £63,000, Manchester buyers need approximately £46,600, Liverpool buyers require around £38,000, Glasgow buyers need approximately £36,600.
Joseph Lane said: “More and more, first-time buyers reach their target of saving for a deposit only to find that they still cannot purchase a property in their chosen area. This is because their salary doesn’t meet the mortgage criteria.”
“Generally speaking, especially in the likes of London, the average worker is earning much less than required by the average lender. Of course, a deposit plays an instrumental role in getting onto the property ladder, but affordability has quietly been dominating the 2026 scene. Ultimately, buyers are finding themselves priced out as their salaries haven’t kept up with the rise of house prices.”
Lorna Hopes, mortgage specialist at the chartered financial advisers Smith & Pinching, said: “The sheer size of the deposit they need leads many first-time buyers to fixate on the number as if it’s the only target that matters. This is understandable, as many will have saved for years to reach this point. But in truth, having a big enough deposit is only half the story.
“Having a sufficiently large and reliable income matters just as much, if not more.”
This week, the Financial Conduct Authority (FCA) set out new rules aimed at making it easier for the self-employed, older borrowers and first-time buyers to get a mortgage. The City watchdog is encouraging banks to take a kinder view of would-be borrowers who may have had credit issues in the past.
David Geale, executive director for payments and digital finance at the FCA, said: “We’re living longer and how many people work has changed. Our mortgage rules need to keep pace so those who can afford to repay can borrow. Stronger protections mean we can now safely widen access to mortgage borrowing for those that may be underserved.”
Sarah Coles, head of personal finance at AJ Bell, said: “Mortgages are just one part of the picture. A healthy housing market also needs enough affordable properties, plus tax rules that don’t distort buyer behaviour and put people off.
“The flow of first-time buyers also depends on people being able to build healthy deposits. This can be a huge challenge when they’re also having to cover the cost of sky-high rents.”
Mortgage experts say first time buyers should look at areas they may not previously have considered and make sure their credit scores are good.
