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.
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.
Yesterday
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.
9 days ago
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.
9 days ago
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
13 days ago
Recent data from Rightmove shows the most expensive streets in Great Britain, with the majority being situated in the capital.
The Bank of England Governor, Andrew Bailey, has advised that, due to the “very big energy shock” the economy is facing, they won’t be in a rush to increase UK interest rates.
Many homeowners don’t realise that a simple act or oversight could invalidate their home insurance policy. Home insurance is essential in protecting your most valuable assets; however, it is important to understand what affects your cover to ensure you are fully protected.
In certain areas, impressive views are one feature that buyers are willing to pay price premiums of more than 30 per cent.