Revealed: How much you need to earn in top UK cities to get on the housing ladder
The gap between average salaries and the amount needed to secure a first home mortgage has been revealed by new analysis. Independent.
Figures from Joseph Lane, founder of broker Mortgage Lane, reveal the salaries required to buy an average first home in the UK’s seven major cities and show that although raising a deposit can be a difficult ask for many, it is not the only problem they face.
Assuming the lender will allow him to borrow 4.5 times his salary, a buyer in London will need to earn around £94,200 to buy the average first home.
Government figures show the average salary in the capital is around £40,000; This leaves the average salary of even a dual-income couple below the mortgage threshold, even with a 10 per cent deposit.
Buyers in Bristol will need around £63,000, buyers in Manchester will need around £46,600, first-time buyers in Liverpool will need around £38,000, while buyers in Glasgow will need around £36,600.
Mr Lane said: “Increasingly, first-time homebuyers are finding that when they reach their target of saving for a deposit, they are still unable to buy a property in their chosen area. This is because their wages do not meet the criteria for a mortgage.
“Generally speaking, especially in places like London, the average worker earns far less than the average lender requires. Of course, the deposit plays a key role in getting on the property ladder, but affordability has quietly dominated the 2026 scene. As a result, buyers are finding themselves priced out as their wages fail to keep up with the rise in house prices.”
Lorna Hopes, chartered accountants’ mortgage expert Smith and PinchHe said: “The amount of deposit they require causes many first-time buyers to fixate on that figure as if it is the only goal that matters. This is understandable as many people will have saved for years to get to this point. But in reality, having a large enough deposit is only half the story.”
“Having a sufficiently large and reliable income is just as important, if not more so.”
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 better look at potential borrowers who may have had credit problems in the past.
David Geale, the FCA’s chief executive of payments and digital finance, said: “We are living longer and things have changed for many people. Our mortgage rules need to keep up, so those who can afford to repay can borrow. Stronger protections mean we can now safely expand access to mortgage credit for the underserved.”
Sarah Coles, head of personal finance at AJ Bell, said: “Mortgages are only part of the picture. A healthy housing market also needs a sufficient supply of affordable properties, as well as tax rules that don’t distort buyer behavior and hold people up.
“The influx of first-time buyers also depends on people being able to establish healthy deposits. This can be a big challenge when they also have to cover the cost of very high rents.”
Mortgage experts say first-time homebuyers should look at areas they haven’t considered before and make sure they have good credit scores.
