How much do you need to earn to secure a new home by this Sunday?

The latest research by new home specialists, Stone Real Estate, has looked at just how long it will take to earn the equivalent of a 15% mortgage deposit for a new home based on the daily wage at a number of different salary brackets.

Stone Real Estate looked at the net earnings per day for various salary levels since the year began and at what point this year or next, these earnings would have reached £43,975, the average 15% deposit for a new build home (£293,167).

The data shows that for those on a wage of £1.2m or above, the minor sum of £43,975 has been in the bag since yesterday, just 26 days into the new year.

However, spare a thought for those buying in London where the average new build cost is £502,228 and a 15% deposit equates to £75,335, as they would have to be on a wage of £2.1m or above to hit the threshold as of yesterday.

In contrast, those just starting out on a wage of £20,000, would have to work for 937 days, 912 days more, just to hit a 15% mortgage deposit on the average new build home, meaning they won’t reach the same point until 26th July 2022!

This is again higher in London, where it would require someone on £20,000 to work for 1,604 days or until 23rd May 2024 just to earn the required deposit of £75,334.

Raking in £50k a year? It would still have to work until 4th March next year (428 days) or 3rd January 2022 in the capital.

From £70,000 a year and up you’re on track to save the average UK new build deposit before 2020 is out, taking 241 days on a £100k salary and just 58 if you’re earning £500k.

In London, you need to be earning £200k to make the cut by August of this year (235 days), while £500k will see you reach the sum in just 100 days!

Even when taking life’s other expenses into account and working on the basis of saving just 20% of your net income, those on £400,000 or more would still have tucked away enough to afford a 15% deposit on the average UK new build this year!

Founder and CEO of Stone Real Estate, Michael Stone, commented: 

“For many aspirational homebuyers across the UK and particularly in London, the financial hurdle of compiling that all-important mortgage deposit is huge and it can take them years of saving in order to get to that point.

Of course, life makes it impossible to save 100% of our income and while it may take you even longer tucking away 20% of your net income, doing so will soon provide you with a very firm foundation and luckily for most of us, the Bank of Mum and Dad will help to reduce the time it takes to get a foot on the ladder considerably.

The silver lining of this long savings slog? Yes the initial hurdle is high, but the reward is one of the most fulfilling in adult life and when buying a new home you’re not only getting great value for money, but your investment will require little to no maintenance for the foreseeable.

Not only this but a new home will hold its value much better than an existing property and even during periods of market uncertainty as we’ve seen recently, new home buyers have enjoyed robust price growth and a great return on their hard-fought investment.”

 

Location
Average new build house price
Average deposit at 15%
United Kingdom
£293,167
£43,975
London
£502,228
£75,334
Tables show time to accumulate the required 15% mortgage deposit on a new build home based on saving all income and at which point this will be reached
United Kingdom
Annual salary category
Net Annual Salary
Salary per day
Deposit for average new build – UK
Days to save deposit
Date from Jan 1st 2020
£20,000
£17,138
£46.95
£43,975
937
26th July 2022
£30,000
£23,938
£65.58
£43,975
671
2nd November 2021
£40,000
£30,738
£84.21
£43,975
522
6th June 2021
£50,000
£37,538
£102.84
£43,975
428
4th March 2021
£60,000
£43,339
£118.74
£43,975
370
5ht January 2021
£70,000
£49,139
£134.63
£43,975
327
23rd November 2020
£80,000
£54,939
£150.52
£43,975
292
19th October 2020
£90,000
£60,739
£166.41
£43,975
264
21st September 2020
£100,000
£66,539
£182.30
£43,975
241
29th August 2020
£200,000
£117,036
£320.65
£43,975
137
17th May 2020
£300,000
£170,036
£465.85
£43,975
94
4th April 2020
£400,000
£223,036
£611.06
£43,975
72
13th March 2020
£500,000
£276,036
£756.26
£43,975
58
28th February 2020
£1,200,000
£647,036
£1,772.70
£43,975
25
26th January 2020
London
Annual salary category
Net Annual Salary
Salary per day
Deposit for average new build – London
Days to save deposit
Date from Jan 1st 2020
£20,000
£17,138
£46.95
£75,334
1604
23rd May 2024
£30,000
£23,938
£65.58
£75,334
1149
23rd February 2023
£40,000
£30,738
£84.21
£75,334
895
14th June 2022
£50,000
£37,538
£102.84
£75,334
733
3rd January 2022
£60,000
£43,339
£118.74
£75,334
634
26th September 2021
£70,000
£49,139
£134.63
£75,334
560
14th July 2021
£80,000
£54,939
£150.52
£75,334
500
15th May 2021
£90,000
£60,739
£166.41
£75,334
453
29th March 2021
£100,000
£66,539
£182.30
£75,334
413
17th February 2021
£200,000
£117,036
£320.65
£75,334
235
23rd August 2020
£300,000
£170,036
£465.85
£75,334
162
11th June 2020
£400,000
£223,036
£611.06
£75,334
123
3rd May 2020
£500,000
£276,036
£756.26
£75,334
100
10th April 2020
£2,100,000
1,124,035.84
£3,079.55
£75,334
24
25th January 2020
Tables show time to accumulate the required 15% mortgage deposit on a new build home based on saving 20% of income and at which point this will be reached.
United Kingdom
Annual salary category
Net Annual Salary
Net Annual Salary – based on 20% saving
Salary factoring savings – per day
Deposit for average new build – UK
Days to save deposit
Date from Jan 1st 2020
£20,000
£17,138
£3,428
£9.39
£43,975
4683
27th October 2032
£30,000
£23,938
£4,788
£13.12
£43,975
3353
7th March 2029
£40,000
£30,738
£6,148
£16.84
£43,975
2611
24th February 2027
£50,000
£37,538
£7,508
£20.57
£43,975
2138
8th November 2025
£60,000
£43,339
£8,668
£23.75
£43,975
1852
26th January 2025
£70,000
£49,139
£9,828
£26.93
£43,975
1633
21st June 2024
£80,000
£54,939
£10,988
£30.10
£43,975
1461
1st January 2024
£90,000
£60,739
£12,148
£33.28
£43,975
1321
14th August 2023
£100,000
£66,539
£13,308
£36.46
£43,975
1206
21st April 2023
£200,000
£117,036
£23,407
£64.13
£43,975
686
17th November 2021
£300,000
£170,036
£34,007
£93.17
£43,975
472
17th April 2021
£400,000
£223,036
£44,607
£122.21
£43,975
360
26th December 2020
£500,000
£276,036
£55,207
£151.25
£43,975
291
18th October 2020
£6,100,000
£3,244,036
£648,807
£1,777.55
£43,975
25
26th January 2020
London
Annual salary category
Net Annual Salary
Net Annual Salary – based on 20% saving
Salary factoring savings – per day
Deposit for average new build – London
Days to save deposit
Date from Jan 1st 2020
£20,000
£17,138
£3,428
£9.39
£75,334
8022
18th December 2014
£30,000
£23,938
£4,788
£13.12
£75,334
5743
22nd September 2035
£40,000
£30,738
£6,148
£16.84
£75,334
4473
31st March 2032
£50,000
£37,538
£7,508
£20.57
£75,334
3663
11th January 2030
£60,000
£43,339
£8,668
£23.75
£75,334
3172
7th September 2028
£70,000
£49,139
£9,828
£26.93
£75,334
2798
30th August 2027
£80,000
£54,939
£10,988
£30.10
£75,334
2502
7th November 2026
£90,000
£60,739
£12,148
£33.28
£75,334
2264
14th March 2026
£100,000
£66,539
£13,308
£36.46
£75,334
2066
28th August 2025
£200,000
£117,036
£23,407
£64.13
£75,334
1175
21st March 2023
£300,000
£170,036
£34,007
£93.17
£75,334
809
20th March 2022
£400,000
£223,036
£44,607
£122.21
£75,334
616
8th September 2021
£500,000
£276,036
£55,207
£151.25
£75,334
498
13th May 2021
£10,200,000
£5,417,036
£1,083,407
£2,968.24
£75,334
25
26th January 2020
Sources
Average new build house price
Average deposits
50/30/20 savings rule

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