Can you really save a house deposit on the UK’s average salary?

If you’re earning the UK’s average salary and trying to start saving for a house deposit, it can feel like the maths just doesn’t add up.

With the average UK salary now just over £39,000, and first-time buyer deposits ranging from around £30,000 to £68,000, depending on where you’re buying, saving for a house deposit can feel out of reach.

So, let’s cut through the noise and answer the question honestly:

Can you really save for a house deposit on the UK’s average salary?

The short answer

Yes, but it takes time, planning, sacrifice and the right support.

The longer answer

Where you’re buying, how you’re saving, and what expectations you’re working with will all have an impact on saving for a house deposit.

Let’s break it down to see how you can map out the journey to your first home.

What is the UK’s average salary and why does it matter?

According to the Office for National Statistics (ONS), the average gross annual earnings for full-time employees were £39,039 in April 2025, up from £37,439 the year before.

That figure gives us a useful benchmark for what might be achievable for many first-time buyers. But getting a mortgage isn’t about salary alone. Mortgage lenders also look at affordability, which means your regular outgoings, existing debts and overall lifestyle all matter. In other words, how you manage your money now plays a big role in what you can borrow later.

How much do you need to save to put a deposit on a house?

The first question to ask yourself might be ‘what is a normal house deposit in the UK?’. Most mortgage lenders require a minimum deposit of 5%, but many buyers aim for 10–15% to access better mortgage rates.

As a rough guide, on a £200,000 home:

5% deposit: £10,000
10% deposit: £20,000
15% deposit: £30,000

That’s a significant amount to save from a monthly income, especially if you’re already covering rent, travel, childcare and utility bills. So, a clear savings plan can be so important when saving for a house deposit.

What’s realistic for where and how you want to live?

First-time buyer deposits have topped £60,000 in parts of London and the Southeast, but they’re significantly lower in Wales, the Midlands and the North. While salaries are generally higher in London, average earnings in Wales can be around £20,000 lower, which means affordability looks very different depending on location.

Rather than focusing on national averages, the most useful question to ask is:

What’s realistic for me, in the area I want to live?

Is a £30k–£40k salary enough to buy a house?

Everyone’s circumstances are different, but yes, with the right planning, it can be.

Many mortgage lenders will consider lending 4.5 to 5 times your income, sometimes more, depending on your circumstances.

For example:

£30,000 salary: borrowing potential of around £135,000–£150,000
£40,000 salary: around £180,000–£200,000

Add a deposit on top, and suddenly buying a home seems more achievable, particularly if you’re looking outside higher priced property hotspots.

However, remember affordability matters just as much as loan size. So how you spend your money now, will be taken into account when you apply for a mortgage to ensure you can afford the repayments comfortably.

What percentage of income should go on your mortgage?

A common rule of thumb is no more than 28% of your gross income should go towards mortgage payments.

So, on a £40,000 salary, that’s around £933 per month.

This guideline exists to ensure borrowers still have room for real life, like food, travel, childcare and the occasional unexpected expense.

In 2024, homeowners with mortgages in England spent an average of 18.7% of their income on housing costs. However, many first-time buyers were spending closer to 37% of their take-home pay, driven by higher interest rates and house prices, making having a healthy house deposit even more important.

How long does it take to save for a house deposit?

Using the 50/30/20 budgeting rule, around 20% of income goes towards savings. On the UK average salary, this means saving for a house deposit can take between five and 10 years.

The timeframe depends on several factors:

Rent and living costs
The size of deposit needed
Whether you’re buying alone or jointly
Whether you use government schemes
How often savings are interrupted
Where you save your money, such as a Lifetime ISA.

Be realistic about unexpected expenses

Even with careful planning, unexpected costs can catch people out.

Hodge research shows one in three UK adults face unexpected expenses, such as car repairs, vet bills or emergency travel and don’t have the cash readily available to pay for them. Which means, in all likelihood, these costs could end up coming directly out of house deposit savings.

It’s good to be realistic when you have long-term savings goals like for a house deposit. It’s all about consistency and knowing some months your saving amount may fluctuate.

Co workers in a modern office engage in a brainstorm with laptop and notepad

You can try our unexpected costs calculator

Answer a few simple questions and we’ll add up your unexpected expenses over the 12 months to give you an idea of how much you’re spending and could consider saving.

Unexpected costs calculator

Saving for a house deposit while renting

Rent is often the biggest barrier when saving for a house deposit, and it can feel like progress is slower than you’d hoped for.

Many people find it helps to focus on:

Consistently saving something regularly, even if it’s modest
Separating savings into dedicated savings accounts or pots
Accepting setbacks, but not giving up.

Saving while renting is tough, but steady progress really does add up over time.

Finding a savings accounts for a house deposit

Lifetime ISA (LISA)

If you’re aged 18–39, a Lifetime ISA can offer:

25% bonus from the Government for savings of up to £4,000 per tax year (up to £1,000 a year)
Bonus paid when you buy your first home (up to the value of £450,000)
The Lifetime ISA limit of £4,000 counts towards your annual ISA limit.

Used well, this can shave years off your saving timeline. It does come with some caveats and won’t be right for everyone, so make sure you read the finer details beforehand.

Please note: Hodge does not offer Lifetime ISAs.
You can find out more about LISAs here.

High-interest savings accounts

For savings outside a LISA, consider:

Competitive interest rates
Easy access or notice accounts
Automatic monthly deposits.

Choosing the right savings account for a house deposit can make a meaningful difference over time.

Practical tips for saving for a house deposit

Track spending for one month to understand where your money goes
Automate savings so you save first and spend second
Make small cutbacks if possible – consider subscriptions and unused memberships
Build a small emergency fund alongside your deposit
Talk to friends and family so they understand your priorities
Consider buying with someone if it suits your plans.

Government schemes and other ways onto the property ladder

If saving a full deposit feels out of reach, there are house deposit schemes and options worth exploring:

Shared Ownership: buy a share of a property and rent the rest
First Homes schemes: discounted homes for local buyers
Family support: gifted deposits, with the right documentation

Each option has it’s own pros and cons, so remember it’s important to consider getting professional advice before committing to make sure it’s the right decision for you.

What are your next steps?

Saving for a house deposit on the UK’s average salary is challenging, but it is possible with the right planning, tools and support.

If you want to understand what’s realistic for your income, your area and your goals, a proper affordability check can be a good place to start.

FAQs: saving for a house deposit

Using the right savings accounts, automating savings and keeping spending under control can all help.

Most buyers put down between 5% and 15% of the property price.

Typically, between 5 and 10 years on the UK average salary, depending on rent, savings rate and location.

Yes, in many areas of the UK it can be. Lenders may offer borrowing of around £135,000–£150,000, depending on affordability and outgoings.

View all FAQs

How Hodge Bank can help

Whether you’re a first-time buyer or looking to move up the property ladder, Hodge can work with you to help with savings strategies and mortgage options to help make your deposit work harder. Find out more in these articles:

5 simple ways to start saving for a house deposit – Hodge Bank

Make the most of your monthly salary with these five simple changes – Hodge Bank

We’ve added 95% LTV to Resi and Resi Retire propositions to support borrowers with complex income – Hodge Bank

Moving house? We reveal three costly mistakes to avoid – Hodge Bank

Mind the Deposit Gap: Why Your Mortgage Deposit Could Make or Break Your Budget in 2025 – Hodge Bank

This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at https://www.unbiased.co.uk/