First-time buyers in major UK cities face a daunting challenge as the salary required to secure a mortgage far exceeds average earnings
The dream of homeownership is becoming increasingly elusive for first-time buyers across the UK, as new analysis reveals a stark disparity between average salaries and the income required to secure a mortgage. This growing gap is creating significant barriers for those attempting to enter the property market, with affordability emerging as a critical issue in 2026.
The findings, compiled by Joseph Lane at Mortgage Lanehighlight the substantial difference between average earnings and the salary needed to purchase the average first home in seven major UK cities. While saving for a deposit remains a considerable challenge, it is not the only hurdle prospective buyers face.
The salary gap across major UK cities
In Londonprospective buyers would need to earn approximately £94,200 to secure a mortgage for the average first home, assuming a lender allows borrowing of 4.5 times their salary. However, government figures indicate that the average salary in the capital is around £40,000, leaving even double-income couples on average pay below the threshold for a mortgage, even with a 10% deposit.
The situation is similarly challenging in other major cities. In Bristolbuyers require around £63,000, while in Manchesterthe figure stands at approximately £46,600. In Liverpoolthe required salary is around £38,000, and in Glasgowit is approximately £36,600. These figures underscore the significant affordability issues facing first-time buyers across the country.
The affordability crisis: A multifaceted challenge
Joseph Lane emphasizes that many first-time buyers reach their deposit-saving goals only to find that their salary still falls short of mortgage criteria. This phenomenon is particularly prevalent in cities like London, where average workers earn considerably less than what lenders require. While a deposit is undoubtedly crucial, affordability has quietly become the dominant factor in the 2026 property market, with many buyers finding themselves priced out as their salaries have not kept pace with rising house prices.
Lorna Hopesa mortgage specialist at Smith & Pinchingnotes that many first-time buyers focus solely on saving for a deposit, often overlooking the importance of a sufficiently large and reliable income. In reality, having a big enough deposit is only half the story, as a stable income is equally, if not more, important.
Regulatory changes and market dynamics
In response to these challenges, the Financial Conduct Authority (FCA) has introduced new rules aimed at making it easier for the self-employed, older borrowers, and first-time buyers to secure a mortgage. The FCA is encouraging banks to adopt a more lenient view of would-be borrowers who may have had credit issues in the past. David Gealeexecutive director for payments and digital finance at the FCA, highlights the need for mortgage rules to evolve with changing work patterns and increased life expectancy.
Sarah Coleshead of personal finance at AJ Bellpoints out that mortgages are just one part of the housing market puzzle. A healthy market also requires an adequate supply of affordable properties and tax rules that do not distort buyer behavior. Additionally, the ability to build healthy deposits is crucial, especially for those struggling with high rental costs.
Mortgage experts advise first-time buyers to explore areas they may not have previously considered and ensure their credit scores are in good standing. By taking a proactive approach, prospective buyers can navigate the complexities of the current market and increase their chances of securing a mortgage.
