For many Brits across the UK, the dream of owning a home has become increasingly elusive.
Ever-rising house prices have outpaced wage growth across England and Wales by 90%, while mortgage rates have also increased, creating a perfect storm of financial barriers for aspiring homeowners.
Data from Zoopla shows that nearly 40% of adults have given up on the idea of owning a home due to the rising cost of living and escalating house prices – with those aged under 40 dubbed ‘Generation Guppy’ – because many have “given up on property”.
In response to this crisis, banks are now considering relaxing their traditional mortgage lending rules, which typically limit borrowing to 4.5 times the borrower’s income. This could allow homeowners to borrow more relative to their income.
Navigating the current UK housing market may feel overwhelming for many homebuyers. In light of this, UK Debt Expert analysed mortgage affordability across 90 UK cities and towns, comparing average salary to mortgage costs in each location for first-time buyer couples and solo home buyers.
What is mortgage affordability?
Lenders assess borrowing capacity through the mortgage-to-salary ratio, which divides the proposed mortgage amount by the borrower’s annual income.
This financial metric helps prevent excessive borrowing and protects both the lender and borrower from unsustainable debt. While most lenders typically cap lending at around 4.5 times annual salary, the exact threshold can fluctuate based on individual financial profiles and regional property market conditions.
Find out below to see where the most expensive location to buy a house is and where you might be able to buy a bargain.
The top 10 most unaffordable locations for potential homeowners
The table below reveals the cities and towns where the mortgage-to-salary ratio exceeds double the standard 4.5 times touchpoint based on each city’s average annual salary and house price.
| Location | Average UK salary | Average house price | 10% deposit | Remaining
mortgage balance (£) |
Mortgage Multiple (x Annual Salary)
Couples |
Mortgage Multiple (x Annual Salary)
Singles |
| London | £40,500.00 | £759,667.00 | £75,966.70 | £683,700.30 | 8.44 | 16.88 |
| St Albans | £42,349.00 | £588,951.00 | £58,895.10 | £530,055.90 | 6.26 | 12.52 |
| Guildford | £37,564.00 | £512,919.00 | £51,291.90 | £461,627.10 | 6.14 | 12.29 |
| Bath | £32,272.00 | £438,877.00 | £43,887.70 | £394,989.30 | 6.12 | 12.24 |
| Oxford | £36,392.00 | £489,188.00 | £48,918.80 | £440,269.20 | 6.05 | 12.10 |
| Brighton | £33,219.00 | £423,274.00 | £42,327.40 | £380,946.60 | 5.73 | 11.47 |
| Cambridge | £38,510.00 | £490,163.00 | £49,016.30 | £441,146.70 | 5.73 | 11.46 |
| Stratford-upon-Avon | £31,490.00 | £382,039.00 | £38,203.90 | £343,835.10 | 5.46 | 10.92 |
| Chelmsford | £33,024.00 | £384,490.00 | £38,449.00 | £346,041.00 | 5.24 | 10.48 |
| Canterbury | £29,586.00 | £343,669.00 | £34,366.90 | £309,302.10 | 5.23 | 10.45 |
| Watford | £34,905.00 | £393,499.00 | £39,349.90 | £354,149.10 | 5.07 | 10.15 |
| Exeter | £27,881.00 | £310,326.00 | £31,032.60 | £279,293.40 | 5.01 | 10.02 |
| Poole | £30,152.00 | £334,993.00 | £33,499.30 | £301,493.70 | 5.00 | 10.00 |
| Bournemouth | £30,152.00 | £334,993.00 | £33,499.30 | £301,493.70 | 5.00 | 10.00 |
| Basildon | £33,717.00 | £365,761.00 | £36,576.10 | £329,184.90 | 4.88 | 9.76 |
| Bristol | £32,785.00 | £353,996.00 | £35,399.60 | £318,596.40 | 4.86 | 9.72 |
| Stevenage | £31,771.00 | £335,513.00 | £33,551.30 | £301,961.70 | 4.75 | 9.50 |
| York | £31,717.00 | £327,762.00 | £32,776.20 | £294,985.80 | 4.65 | 9.30 |
| Maidstone | £32,355.00 | £332,869.00 | £33,286.90 | £299,582.10 | 4.63 | 9.26 |
| Bedford | £33,747.00 | £344,715.00 | £34,471.50 | £310,243.50 | 4.60 | 9.19 |
The City of London tops the chart with the most challenging affordability ratios – couples need to borrow 8.44 times their salaries, while single buyers face a staggering 16.88 times their salary based on the average.
This affordability crisis extends throughout southern England, particularly affecting popular commuter towns. In St. Albans, homebuyers on an average salary would need to borrow 12.52 times as a solo buyer or 6.26 times as a couple.
Similarly, in Watford, where the average salary is just over £34,000, the mortgage-to-salary ratio averages 5.07 for couples and 10.15 for solo homebuyers. These commuter areas have become increasingly popular as alternatives to living in the capital, offering a balance of lifestyle and accessibility.
However, this demand has driven up house prices by 3.9% in the last year, though buyers still find opportunities through options like maisonettes, flats, or auction properties.
Coastal cities are facing similar challenges. In Brighton, where the population has grown by 27% since 2011, single buyers need to borrow 11.47 times their salary, while couples face 5.73 times.
The growing appeal of seaside living, combined with limited affordable housing stock, continues to drive up prices. Bournemouth shows slightly better but still challenging affordability ratios, with couples needing five times their salary and singles 10 times.
While these figures may seem daunting, it’s important to note they’re based on averages. First-time buyers can still find success through various routes, including shared ownership, help-to-buy schemes, or focusing on more affordable areas within these cities.
The top 10 most affordable cities and towns to buy a house in 2025
The research also revealed the cities that may be more affordable for first-time buyers.
| Location | Average UK salary | Average house price | 10% deposit | Remaining
mortgage balance (£) |
Mortgage Multiple (x Annual Salary)
Couples |
Mortgage Multiple (x Annual Salary)
Singles |
| Aberdeen | £31,910.00 | £137,487.00 | £13,748.70 | £123,738.30 | 1.94 | 3.88 |
| Durham | £28,411.00 | £130,130.00 | £13,013.00 | £117,117.00 | 2.06 | 4.12 |
| Hartlepool | £27,504.00 | £128,293.00 | £12,829.30 | £115,463.70 | 2.10 | 4.20 |
| Sunderland | £28,236.00 | £142,121.00 | £14,212.10 | £127,908.90 | 2.26 | 4.53 |
| Middlesbrough | £27,406.00 | £138,201.00 | £13,820.10 | £124,380.90 | 2.27 | 4.54 |
| Dundee | £30,114.00 | £152,831.00 | £15,283.10 | £137,547.90 | 2.28 | 4.57 |
| Blackpool | £26,707.00 | £136,867.00 | £13,686.70 | £123,180.30 | 2.31 | 4.61 |
| Hull | £27,059.00 | £143,563.00 | £14,356.30 | £129,206.70 | 2.39 | 4.77 |
| Stoke-on-Trent | £26,784.00 | £146,885.00 | £14,688.50 | £132,196.50 | 2.47 | 4.94 |
| Barnsley | £30,435.00 | £169,456.00 | £16,945.60 | £152,510.40 | 2.51 | 5.01 |
| Doncaster | £30,228.00 | £175,575.00 | £17,557.50 | £158,017.50 | 2.61 | 5.23 |
| Gateshead | £27,480.00 | £160,010.00 | £16,001.00 | £144,009.00 | 2.62 | 5.24 |
| Preston | £28,812.00 | £169,281.00 | £16,928.10 | £152,352.90 | 2.64 | 5.29 |
| Blackburn | £26,116.00 | £153,473.00 | £15,347.30 | £138,125.70 | 2.64 | 5.29 |
| Darlington | £27,559.00 | £164,872.00 | £16,487.20 | £148,384.80 | 2.69 | 5.38 |
| Liverpool | £29,731.00 | £179,382.00 | £17,938.20 | £161,443.80 | 2.72 | 5.43 |
| Glasgow | £30,690.00 | £185,660.00 | £18,566.00 | £167,094.00 | 2.72 | 5.44 |
| Lincoln | £28,849.00 | £181,775.00 | £18,177.50 | £163,597.50 | 2.84 | 5.67 |
| Wigan | £30,406.00 | £194,593.00 | £19,459.30 | £175,133.70 | 2.88 | 5.76 |
| Chesterfield | £28,669.00 | £193,707.00 | £19,370.70 | £174,336.30 | 3.04 | 6.08 |
The research revealed a clear trend that Northern cities have the lowest mortgage-to-salary ratios, making them the most affordable places for homebuyers.
Aberdeen stands out as the most affordable city. With an average annual salary of £31,910 and house prices averaging £137,487, couples need to borrow just 1.94 times their salaries, while single buyers face a modest 3.88 times.
Located just over two hours from both Edinburgh and Glasgow, the city offers an attractive option for those looking to get on the property ladder, with property prices well below the national average making mortgages more attainable.
Hartlepool follows closely behind in affordability, with couples needing only 2.10 times the average salary of £27,504. These northern locations offer hope, particularly given that one-third of young people fear they may never be able to get on the property ladder.
Are there cheaper ways to get on the property ladder?
While location plays a crucial role, there are various routes to homeownership beyond just increasing borrowing capacity.
Prospective buyers might consider choosing a more affordable property as a stepping stone into the market, researching areas with lower average house prices, or exploring fixer-upper properties at auctions.
These alternative approaches can help make homeownership more attainable while building equity for future moves up the property ladder.
For those looking to start the homebuying process, having a clear overview of your finances is essential:
- Review all debts: Before house hunting, ensure your debts are either cleared or in the process of being cleared. Take stock of credit cards, overdrafts, and loans by documenting the total amounts owed and develop a plan to address any ongoing debt.
- Create a realistic budget: Calculate your current spending on household bills, groceries, transport, and socialising. Factor in potential mortgage payments and create a total budget that you can comfortably maintain without financial strain.
- Check your credit report: Review your credit status and score before applying for a mortgage. After assessing your ongoing debts, identify areas where you can improve your credit score. Starting early ensures smoother credit checks when you’re ready to apply.
- Extra fees: Budget for essential costs like removals, solicitor fees, surveyor charges, and potential repairs, which can total thousands. Don’t try to cut corners on these services to save money, as this could lead to complications and delays in your property transaction.
- Stamp duty fees: Recent changes to stamp duty mean first-time buyers may need to pay stamp duty, particularly on properties over £300,000. With rates starting at 5% of the purchase price, this represents a significant additional cost to factor into your budget.
“All hope is not lost”
If you’re feeling overwhelmed, especially while managing current debt, don’t hesitate to reach out. Discussing options with trusted family or friends can help, and financial advisors can provide professional guidance on improving your financial position.
Personal finance expert, Maxine McCreadie, commented on the research:
“For aspiring homeowners in the UK, navigating the housing market has never been more challenging. With house prices far outpacing wage growth and mortgage rates climbing, the dream of owning a home feels increasingly out of reach for many.
“But all hope is not lost. The research shows that, even in these challenging times, opportunities remain particularly in the north of the UK or maybe taking the time to save a larger deposit for the south. Preparing ahead can be useful whether you’re in a couple or buying alone and remembering that there are options available.”
Methodology
UK Debt Expert analysed data sources including:
- House prices: Office for National Statistics
- Average salaries: Land registry
For the dataset we took the 10% deposit on the average house price, resulting in an 90% mortgage. We then divided the total mortgage by the average salary for a couple and for one person.
Data correct as of January 2025
