Salaries and loans up for houses in the UK, as deposits remain low
Data from Twenty7tec, leading adviser tech provider, shows that whilst salaries are up, the level of deposit being put forward by buyers has reduced.
By analysing the data from 2024, 2023 and 2020, Twenty7tec found that house prices for all property types apart from bungalows are rising.
| Year/Property Type | Bungalow | Flat | House | Maisonette |
| 2024 | £319,207 | £288,931 | £358,688 | £303,205 |
| 2023 | £323,181 | £276,772 | £344,130 | £292,002 |
| 2020 | £297,382 | £297,048 | £323,632 | £280,025 |
| -£3,974 | £12,159 | £14,558 | £11,203 | |
| -1.23% | 4.39% | 4.23% |
3.84% |
The loans required for these property types have risen as below.
| Loan required | ||||
| Year/Property Type | Bungalow | Flat | House | Maisonette |
| 2020 | £221,432 | £222,735 | £264,232 | £233,480 |
| 2023 | £216,528 | £211,285 | £248,663 | £222,545 |
| 2024 | £193,046 | £210,024 | £231,773 | £210,506 |
| £4,904 | £11,450 | £15,569 | £10,935 | |
| 2.26% | 5.42% | 6.26% | 4.91% |
Yet despite combined salary averages being at £77,028 across all mortgage searches in 2024, up 9.52% on the prior year, the deposits people are using to secure their homes have dropped.
| Multiples of combined salaries | ||||
| Year/Property Type | Bungalow | Flat | House | Maisonette |
| 2024 | 3.47 | 3.36 | 3.47 | 3.42 |
| 2023 | 3.51 | 3.43 | 3.42 | 3.55 |
| 2020 | 3.50 | 3.49 | 3.60 | 3.60 |
| Deposit as a multiple of combined income | ||||
| Year/Property Type | Bungalow | Flat | House | Maisonette |
| 2024 | 1.5340 | 0.9984 | 1.2405 | 1.0221 |
| 2023 | 1.7312 | 1.0617 | 1.3134 | 1.1066 |
| 2020 | 1.8891 | 1.4456 | 1.4263 | 1.1891 |
Nathan Reilly, Director at Twenty7tec, says: “The current economic climate is making it increasingly difficult for people to afford larger deposits when buying a home. While house prices have risen and salaries have broadly kept pace with house price inflation, many prospective buyers are struggling to translate those salary gains into significant deposits. This shift reflects the affordability pressures faced by homebuyers and first time buyers, with borrowing multiples increasing and more of an onus on lenders to consider higher loan to value mortgages. ”
“As we move through 2025 and beyond, it will be crucial to see how lenders adapt their products to meet the challenges posed by this change in customer circumstances. For advisers, staying informed about the latest products and offers will be vital to ensuring they provide the best possible value and guidance to their clients in these uncertain times.”
