New analysis shows deposits outpacing earnings in nearly two-thirds of local areas
The majority of would-be buyers across Great Britain now need to save a deposit larger than their annual gross pay, according to research from estate agency eXp UK.
Using average house price data alongside average annual earnings across Great Britain, the firm found that in 62.1% of local housing markets, the typical deposit required is greater than a full year’s income, highlighting the scale of current affordability pressures for prospective homeowners.
Based on the latest available UK House Price Index for December 2025, the average property value in Great Britain stands at £272,618. On the assumption of a 15% deposit, this equates to £40,893. By comparison, average annual earnings are £40,436 – around 1.1% lower than the deposit requirement – meaning an average buyer must save more than one year’s salary before securing a home.
Affordability strain is evident across much of the country, with London showing the widest gap between deposits and earnings.
In the capital, the average house price of £551,294 requires a 15% deposit of £82,694. Average annual pay in London is £55,033, meaning a full year’s income covers just over half (50.3%) of the deposit needed.
Outside London, southern regions show the next highest shortfalls. In the South East, the average deposit is 27.5% higher than typical annual earnings. In the South West, the gap is 25.3%, followed by the East of England at 17.1%. In the East Midlands and West Midlands, deposits exceed average salaries by 2.3% and 1.3% respectively.
At the other end of the spectrum, some markets still offer a more favourable balance between income and upfront costs. In the North East, the average salary is 27.1% higher than the standard 15% deposit. In Scotland, earnings are 24.8% above the typical downpayment.
Across 343 local authority districts with available earnings data, 213 – or 62.1% – have average deposit requirements that surpass a full year’s salary, underlining how widespread the challenge has become.
“These figures lay bare the scale of the deposit hurdle facing today’s homebuyers,” said Adam Day (pictured right), head of eXp UK and Europe. “For many aspiring homeowners, the challenge is no longer just meeting mortgage affordability criteria, but accumulating a lump sum that in much of the country exceeds an entire year’s gross income.
“While house price growth has moderated in some areas, deposit requirements remain closely tied to overall values, and earnings simply have not kept pace in large parts of the market. This is particularly evident across London and the South East, where even relatively strong salaries cover only a fraction of what is needed upfront.
“If we are serious about improving access to homeownership, the conversation has to extend beyond house prices alone. Greater consideration must be given to how buyers can realistically build deposits, whether through targeted support, innovative lending solutions or a sustained focus on increasing housing supply. Without that, the gap between aspiration and reality will remain too wide for many households.”
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