Owning a home has long been a key milestone for many in the UK. However, recent statistics highlight a shift: 60% of non-homeowners now believe they may never own property, compared to 40% who remain hopeful. This change raises questions about the feasibility and perception of homeownership amid evolving market conditions.
Is Homeownership Still Important to Renters?
Despite doubts, owning a home remains significant for many. Recent surveys reveal that 76% of non-homeowners still value homeownership, while 24% see it as unimportant. Among those disenchanted, 52% cite the current housing market as the main barrier, followed by concerns about financial commitment and the perceived ease of renting.
Salary Challenges in Achieving Homeownership
Our analysis indicates that an individual needs an average annual salary of £59,307 to buy a home in the UK. However, data from the ONS shows that even the highest-paying sectors fall short of this benchmark:
- Electricity and utilities: Median pay at £50,528, still £8,779 below the needed figure.
- Financial services: Second highest at £48,197, yet still not sufficient.
Other sectors, including mining, IT, and professional services, similarly lag behind.
Top-Paying Industries:
| Industry | Median Annual Salary (£) |
|---|---|
| Electricity, gas, steam & air supply | 50,528 |
| Financial & insurance activities | 48,197 |
| Mining & quarrying | 46,978 |
| Information & communication | 44,733 |
| Professional, scientific & technical | 41,453 |
| Required Salary for Homeownership | 59,307 |
Lowest-Paid Industries and the Struggle for Homeownership
Certain sectors face an even greater gap. Domestic personnel, for example, earn just £25,085, requiring an income boost of over £34,000 to reach affordability. Other low-paying industries include accommodation, agriculture, and motor repair.
Lowest-Paying Industries:
| Industry | Median Annual Salary (£) |
|---|---|
| Household goods & services | 25,085 |
| Accommodation & food services | 25,522 |
| Agriculture, forestry, and fishing | 29,355 |
| Other service activities | 29,692 |
| Motor vehicle repair | 29,963 |
| Required Salary for Homeownership | 59,307 |
Making Homeownership More Attainable
Many believe government interventions could bridge the gap. Lower mortgage rates and subsidised house prices top the list of public suggestions. Paula Higgins, CEO of HomeOwners Alliance, advocates updating Lifetime ISAs and aligning home-buying support schemes with current market realities to ease the path for first-time buyers.
Expert Tips for Aspiring Homeowners:
- Start an ISA: Save with a Lifetime ISA to receive a 25% government bonus on contributions.
- Improve Your Credit Score: Ensure you're viewed as a reliable borrower.
- Get a Mortgage in Principle: This helps set realistic property expectations and strengthens your position with agents.
- Budget for All Costs: Account for fees, surveys, and other associated expenses.
- Seek Family Support: Options like guarantor or joint mortgages can help.
- Consider Shared Ownership: Buy a share of a home and expand ownership over time.