House Deposits More Than Median Annual Salary in South East England

Statistics now show that those looking to purchase a property would have to save a deposit bigger than their annual gross pay.

According to Forbes, the median annual salary for a full-time employee aged 22 to 29 is £33,696 (Oct, 2025). The average cost of a terraced property in South East England is £405,367 according to Rightmove (2025).

Based on the above calculations, the buyer would be short on their deposit by £6,841 if they wanted to put down 10% on a £405,367 property.

The concerns around affordability aren’t limited to South East England, as other regions are also finding that their annual income won’t cover 10% deposit on a terraced property, including the East of England and London.

The difference ten years ago

It’s a stark difference from ten years ago, when the average property prices were around £193,900 (Nationwide Building Society), and the median annual salary in 2015 was £27,600 (ONS).

Do you need 10% deposit?

Having 10% deposit to put towards a property isn’t always required. Some banks and building societies will offer 95-99% loan-to-value (LTV) mortgages, meaning you will have to save a much smaller deposit. Some lenders will even allow you to borrow the full amount for the property, meaning you require zero deposit (must meet criteria).

There are, however, benefits to having 10% available; these include more options for better interest rates, resulting in lower monthly payments.

If you are looking to buy a property and are unsure about how much you need to save for a deposit, get in touch with the Mortgage Required team, who can help you to choose a product suited to you.

Recent posts

Deals of week web larger

Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.

Call us for more information: 01628 507477 or email: team@mortgagerequired.com.

Most Affordable UK Spots For First Time Buyers   Web Larger

Research from Lloyds identifies the most affordable areas in the UK for first-time buyers to be able to get onto the property ladder.

Kings Speech   Web Larger

On Wednesday, 13th May, King Charles delivered his speech at the House of Lords, outlining the government’s plans for the upcoming year.

Here is a summary of the housing and energy/environment points. 

Lloyds 5k   Web Larger

From 18th May 2026, Halifax (part of Lloyds Banking Group) is launching a ‘£5k Deposit mortgage’ to help first-time buyers get onto the property ladder sooner.

Trumpflation   Web Larger

Homeowners could be faced with paying over £3,000 more per year on their mortgage if the conflict in the Middle East continues, following new analysis from INTEREST from Moneyfacts.

Renters' Rights Act

28 Apr 2026

Renters Rights Act   Web Larger

The Renter’s Rights Bill became law at the end of October, which means it has been signed off by the King, and it is now the Renters’ Rights Act. Despite this becoming law, these changes are likely to start changing within the next six months, with the aim of being fully implemented throughout 2026 and into 2027.

 

Green mortgages web larger

Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer. 

Costliest Streets   Web Larger

Recent data from Rightmove shows the most expensive streets in Great Britain, with the majority being situated in the capital.