Only One UK Industry Pays Enough to Afford the Average Home

Buying a home has always been a significant financial commitment, but new research suggests that for most single earners in the UK, it has become an increasingly difficult goal to achieve. According to findings from Go.Compare home insurance, just one industry sector now pays a median salary high enough for a single person to comfortably meet the mortgage repayments on the average UK property.

The research estimates that an annual income of approximately £56,476 is needed for an individual to manage mortgage repayments on a home priced at £270,000, a figure based on Land Registry data, a 90% loan-to-value mortgage, a 4.26% interest rate, and a 25-year repayment term. Of all the industries analysed using ONS salary data, only the financial and insurance activities sector, with a median salary of £58,488, clears that threshold.

The second highest-paying sector, electricity, gas, steam and air conditioning supply, falls just short at £55,469, leaving workers roughly £1,000 below the required income. Information and communication roles, the third highest paid, provide a median salary of £52,264, some £4,200 under the target. At the other end of the scale, the accommodation and food services industry has a median salary of just £28,687, barely half of what is needed. Household goods and services workers fare only slightly better, earning a median of £31,400, around £25,000 short of the income required to buy.

These figures paint a stark picture of affordability across the country, and the implications are no less relevant for those looking to buy or sell property in our local area. Rugby and the surrounding villages in Warwickshire offer a broad range of housing, from period terraces and family homes to new-build developments. While average prices in this part of the Midlands can differ from the national figure, the underlying tension between wages and house prices is one that many local buyers will recognise. First-time buyers in particular may find themselves weighing up what they can realistically afford, even in areas that have traditionally been considered more accessible than major cities.

For sellers, the research is a reminder that the pool of buyers who can afford to purchase on a single income is narrower than many might assume. This doesn't necessarily mean that demand is weak, far from it. Many buyers purchase as couples or with financial support from family, but it does underline the importance of pricing a property realistically and presenting it in the best possible light. Homes that are well-marketed, competitively priced, and properly presented are far more likely to attract serious interest, particularly when affordability is under pressure.

The Go.Compare study also revealed a notable shift in attitudes towards home ownership. Around 55% of non-homeowners now say they do not believe they will ever be able to buy a property, while the proportion who consider ownership to be important has dropped from 76% in 2024 to just 55% today. More than a quarter of non-homeowners said they no longer view owning a home as important at all. These are significant cultural shifts, and they reflect just how far house prices have outpaced wage growth in recent years.

Nathan Blackler, a spokesperson for Go.Compare, acknowledged the scale of the challenge, noting that whilst the gap between wages and house prices has started to narrow slightly, much more needs to be done to support those trying to get on the property ladder. He encouraged people to take practical steps such as reviewing household bills, comparing insurance and energy costs, and using budgeting tools to identify areas where spending could be reduced, all of which can help improve a buyer's financial position over time.

For anyone looking to buy in the local area, it is worth speaking to an independent mortgage adviser early in the process to understand exactly what you can borrow and what your monthly repayments might look like. An agreement in principle can give you a clearer picture of your budget and put you in a stronger position when making an offer. Equally, for those thinking of selling, understanding the financial pressures that today's buyers face can help inform decisions around asking price and marketing strategy.

At Ellis Brooke, we work with buyers and sellers across Rugby and the surrounding parts of Warwickshire every day, and we understand how important it is to have clear, honest guidance throughout the process. Whether you are taking your first step onto the property ladder or preparing to sell your current home, our team is here to help you navigate the market with confidence. If you would like to discuss your options, or if you would like a free, no-obligation valuation of your property, please do not hesitate to get in touch.