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.