Buying a home is one of the biggest financial decisions most people will make. But with house prices, mortgage rates and the cost of living constantly changing, how much does it actually cost to buy a house in the UK today – and how many people can realistically afford one?
The answer depends on where you live, your income, your deposit and your other financial commitments. However, the latest figures give us a useful picture of the current market.
What does the average UK home cost?
According to the latest UK House Price Index, the average UK property was worth around £273,000 in July 2026. Prices had increased by 1.4% compared with the previous year. GGOV.UK
However, there is a significant difference between different parts of the UK.
In July 2026, the average property price was approximately:
England: £293,000
Scotland: around £195,000
Wales: around £213,000
Northern Ireland: around £202,000
London: £550,000. GGOV.UK+1
This means that saying "the average house costs £273,000" does not necessarily tell you very much about what a buyer will actually need to spend. A buyer in London faces a very different market from someone buying in Scotland or the North East of England.
How much deposit do you need?
Most buyers need a deposit before they can obtain a mortgage. A typical deposit is between 5% and 10%, although putting down more can give you access to a wider range of mortgage deals and potentially lower monthly payments. MMaPS+1
For a £273,000 property:
A 5% deposit would be £13,650
A 10% deposit would be £27,300
A 20% deposit would be £54,600
But the deposit is not the only money you need.
You also need to budget for costs such as legal fees, searches, a survey, mortgage fees, moving costs and potentially Stamp Duty Land Tax or another property tax depending on where you live and your circumstances. MoneyHelper estimates that buying or selling a property can involve more than £5,000 in fees, excluding the deposit and Stamp Duty or Land Tax. MMaPS
How much do you need to earn to buy a home?
This is where things become more complicated.
Mortgage lenders do not simply look at the property's price. They consider your income, your regular spending, debts and other financial commitments when deciding how much they are prepared to lend.
As a general guide, many lenders will cap borrowing at around 4.5 times annual income, although this is not guaranteed and many borrowers are offered less. MMaPS
For example, suppose you wanted to buy a £273,000 home with a 10% deposit of £27,300.
You would need a mortgage of approximately £245,700.
At 4.5 times income, that would suggest a household income of roughly £54,600 a year.
This is only an illustration. Your actual borrowing limit could be higher or lower depending on your circumstances, and a lender will also consider your monthly expenses.
Can the average person afford an average home?
The figures show why buying a home can be difficult for many people.
The median annual earnings for a full-time employee in the UK were about £39,039 in April 2025. OOffice for National Statistics
In simple terms, a single person earning around the UK median full-time salary may not be able to borrow enough on their own to purchase an average-priced UK property, particularly once a deposit and other costs are taken into account.
Buying as a couple can make a significant difference because both incomes may be taken into consideration when applying for a mortgage.
However, it is important not to assume that two incomes automatically make a property affordable. Lenders also look at debts, childcare, living costs, credit commitments and other regular spending.
House prices are still high compared with earnings
The affordability problem becomes even clearer when we compare house prices with earnings.
The Office for National Statistics found that, in 2025, the median home in England cost 7.6 times the median annual earnings of a full-time employee. In Wales, the figure was 6.0 times earnings. OOffice for National Statistics
London remains particularly challenging. The ONS reported a property-price-to-income ratio of 5.2 for mortgage sales in London in 2025, compared with 3.6 in the North East. OOffice for National Statistics
This helps explain why buyers in some areas need significantly higher incomes, larger deposits or financial help from family to get onto the property ladder.
So, how many people can afford to buy?
There isn't a single percentage that can accurately answer this question.
Affordability is not determined by salary alone. Someone earning £50,000 with very few financial commitments may be in a stronger position than someone earning £70,000 but with substantial debts and other expenses.
The latest ONS figures put median UK household disposable income at £39,200 for the financial year ending 2025. OOffice for National Statistics
This does not mean that households earning £39,200 cannot buy a home. It simply shows that the finances of a typical household are not the same as the income that might be needed to comfortably purchase an average-priced property using a traditional mortgage.
For many buyers, particularly first-time buyers, affordability therefore depends on a combination of two incomes, savings, family assistance, the location of the property and the price of the home they choose.
What does this mean if you are thinking about buying?
The headline house price is only the starting point.
Before viewing properties, it is sensible to work out:
How much deposit you have available.
How much a lender may be prepared to lend.
What monthly mortgage payment you can realistically afford.
How much you need to keep aside for legal, tax and moving costs.
Whether your finances would still work if your circumstances changed.
A mortgage in principle can give you a useful indication of how much you may be able to borrow, but it is not a guarantee of a mortgage offer. MMaPS
The bottom line
Buying a home in the UK remains a significant financial commitment. With the average property now costing around £273,000, many buyers will need a substantial deposit and a household income high enough to satisfy a mortgage lender's affordability checks.
But there is no single figure that determines whether you can afford a home.
The best approach is to look at your own finances rather than the UK average. Understanding your budget before you start house hunting can help you avoid falling in love with a property that is ultimately outside your reach – and make the buying process much less stressful.