Only Financial Sector Affords Average Home
- Sarah Ruivivar
- 7 days ago
- 1 min read
In a surprising twist, research reveals that only one job sector in the UK pays enough for the average house price.
Go.Compare's analysis shows that a single person needs an annual income of £56,476 to comfortably afford a £270,000 home. Yet, only the financial and insurance industry offers a median salary of £58,488, just enough to make the cut.
The study, using ONS and Land Registry data, highlights the stark reality of housing affordability. With a 90% loan-to-value mortgage at a 4.26% interest rate over 25 years, most industries fall short. Even the second highest-paying sector, electricity and gas, misses the mark with a median salary of £55,469.
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At the other end, accommodation and food services lag significantly, with a median salary of £28,687—nearly half of what's needed. The struggle is real, as 55% of non-homeowners doubt they'll ever buy a home, a sentiment echoed by declining interest in home ownership.
Nathan Blackler from Go.Compare emphasises the gap between house prices and wage growth, urging first-time buyer support. While the situation is grim, savvy budgeting and price comparisons for bills and insurance can offer some relief. So, while the dream of home ownership feels distant for many, a little financial finesse might just bridge the gap.
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