Homebuyers in more than six in 10 housing markets across Great Britain now need to save a deposit larger than the average annual salary, according to new analysis from estate agency network eXp UK.

The research shows that in 62% of Britain’s housing markets, the typical deposit required to buy a home is greater than a full year’s earnings, highlighting the scale of the affordability challenge facing prospective homeowners.

eXp UK compared average house price data with average annual earnings across Great Britain to assess where buyers must save more than a year’s salary to secure a deposit. The findings suggest that the upfront cost of buying a home has become a significant barrier across large parts of the country.

The analysis found that the average house price in Great Britain currently stands at £272,618, based on the latest available UK House Price Index data from December 2026.

With a typical deposit set at 15%, buyers must put down an average of £40,893. By comparison, the average annual salary across Britain stands at £40,436, meaning the required deposit is 1.1% higher than the typical yearly income.

As a result, many buyers must accumulate savings equivalent to more than a full year’s earnings simply to secure a property.

REGIONAL PRESSURES

Affordability pressures vary significantly across Britain, with the greatest strain found in London.

In the capital, the average property price is £551,294, requiring a 15% deposit of £82,694. However, the average annual salary in London stands at £55,033, meaning a full year’s income covers just 50.3% of the deposit required.

Elsewhere, the average deposit exceeds annual earnings by 27.5% in the South East, by 25.3% in the South West and by 17.1% in the East of England.

The East Midlands and West Midlands also face affordability pressures, with deposits exceeding annual earnings by 2.3% and 1.3% respectively.

In contrast, some regions remain comparatively more accessible for buyers. In the North East, the average salary is 27.1% higher than the typical deposit requirement, while in Scotland earnings exceed the average deposit by 24.8%.

LOCAL AUTHORITY BREAKDOWN

At a more granular level, the gap between incomes and deposits remains widespread.

Across the 343 Local Authority districts for which salary data is available, the deposit requirement exceeds a full year’s earnings in 213 areas, equivalent to 62.1% of the total.

“the regional variation we’re seeing shows that Britain’s housing market is far from uniform”

Adam Day, head of eXp UK and Europe, said: “These figures lay bare the scale of the deposit hurdle facing today’s homebuyers. 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.

“And let’s not forget that first-time buyers are having to find ways to save while also paying their rent each month.”

REGIONAL VARIATION

And he added: “At the same time, the regional variation we’re seeing shows that Britain’s housing market is far from uniform.

“In areas such as the North East and Scotland, the balance between earnings and deposit requirements is far more favourable, which continues to support buyer activity and first-time buyer demand.

“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.”