Home ownership is becoming less accessible for many working families, as affordability criteria tighten and average wages remain around £37,800, according to recent figures from Twenty7tec

More than half of first-time buyers in the UK are earning less than £60,000, according to recent figures from Twenty7tec, raising concerns that even households with two incomes are finding it increasingly difficult to buy a home.

The mortgage technology firm has highlighted that home ownership is becoming less accessible for many working families, as affordability criteria tighten and average wages remain around £37,800.

The challenge is compounded by the fact that, with the average property price now approximately £290,000, a joint income of £60,000 typically allows for a mortgage of about £270,000. This leaves a deposit requirement of around £30,000 to reach the national average purchase price.

Regional disparities further complicate matters. In the South East, average prices have crossed £440,000, while cities such as Leeds and Manchester are experiencing rapid increases, driven by post-pandemic migration and investment.

Increasingly, the answer is found not in higher earnings, but in outside help, said Nakita Moss, head of lender at Twenty7tec. Many first-time buyers are on modest incomes, even as they reach their late 30s, which leaves very little room for error when it comes to affordability.

This has led to people having to wait longer to save a deposit, often skipping smaller flats and moving straight into family-sized homes as they juggle career progression with starting families. From this, advisers are having to reassess how they guide clients on long-term affordability and risk, she added.

Recent government interventions, such as stamp duty relief for first-time buyers, have provided some short-term support. However, the reduction of the nil-rate threshold from £425,000 to £300,000 earlier this year has limited the impact of these measures on overall affordability.

When considering each of these factors, we predict that those stuck in ‘Generation Rent’ will choose unconventional methods to get on the ladder, Moss said. We are already seeing a steady rise in group mortgages, with friends or family members buying together, as well as intergenerational households and co-ownership living models.