1975 vs 2025: How much harder is it for first-time buyers today?
Have you ever wondered how much harder it is to buy a house today compared to 50 years ago? Dive into our findings to see how rising deposit and house sizes when compared to stagnant salaries have reshaped the path to homeownership, making it a tougher journey for today’s buyers.


We've analysed house prices, salaries, deposits, and more for every year since 1975. The results are eye-opening: today, prospective first-time buyers face daunting challenges when compared to those who joined the property ladder 50 years ago.
How the average first-time buyer has changed in the last 50 years
Our comprehensive analysis has uncovered the following figures, revealing just how much harder it is to buy your first house as a couple in 2025 compared to 1975:
Average | 1975 | 2025 | Difference |
---|---|---|---|
House price | £10,978 | £272,819 | +2,385% (+£26,1841) |
Deposit | £588 | £55,029 | +9,259% (+£54,441) |
House price vs salary | 2.35 times annual income (234.57%) | 3.89 times annual income (388.63%) | +154% |
Deposit as a % of a house | 5.36% | 20.17% | +14.81% |
Deposit as a % of income for 2-people | 12.56% | 78.39% | +65.83% |
Years to save a deposit | 8 months | 3 years and 11 months | +3 years and 3 months |
Our key findings have revealed that:
House prices have skyrocketed by 2,385% in 50 years - increasing from just £10,978 in 1975 to £272,819 in 2025.
However, salaries have grown by 1,400% in the same period. In fact, if wages had kept pace with property inflation, today's average salary for two people would need to be £116,303. This means current salaries are £46,103 short of keeping pace with house prices.
Alternatively, if house prices had only risen in line with wages, the average house would cost £164,670 today, meaning current prices are over £108,000 higher than they should be.
In 2025, a couple would need 3 years and 11 months to save for a deposit (by setting 20% of their income each month). In 1975, the method would take just 8 months.
In 1975, the average deposit was just 13% of two people's annual salary - but today, it's 78%.
The average deposit saved (as a percentage of the property price) is increasing too - in 1975, first-time buyer couples would save an average deposit of 5.36%. Today, it's 20%.
The shocking shift in house prices vs. salaries over 50 years
When we take a look at the numbers, it becomes clear that the journey to homeownership has changed dramatically over the past 50 years. Back in 1975, the average salary for two people was £4,680, and you could purchase a house for around £10,978.
Fast forward to 2025, and the average salary has climbed to £70,200 for two people (£35,100 per person), but house prices have skyrocketed to £272,819. That’s an increase of over 2,385% in house prices compared to just 1,400% in salaries.
What does this mean for aspiring homeowners? Well, it's clear that salaries have increased, they haven't kept pace with the explosive growth in house prices.
If today’s house prices had risen in line with salaries, they would be £ cheaper than they are
To highlight the imbalance, we’ve calculated how different things could look if the average salary had grown at the same rate as the average house price (+2,385%).
Today’s average salary would be £58,149 – significantly higher than the current £35,100.
On the flip side, if house prices had risen in line with stagnant salary growth, the average home would cost £164,670 – that’s £108,149 less than today’s average.
A decade-by-decade breakdown of soaring house prices vs. stagnant salaries
We’ve uncovered a widening gap between house prices and salaries in the last 50 years:
Year | Average joint salary | Average house price | House price to income ratio |
---|---|---|---|
1975 | £4,680 | £10,978 | x2.35 |
1985 | £14,976 | £34,700 | x2.32 |
1995 | £29,120 | £54,008 | x1.85 |
2005 | £43,992 | £157,627 | x3.58 |
2015 | £54,080 | £195,733 | x3.62 |
2025 | £70,200 | £272,819 | x3.89 |
1975: The average house cost a modest £10,978. Back then, that was about 2.35 times the typical joint salary of £4,680.
1985: Over the next decade, house prices rose to £34,700, while salaries rose to £14,976 for two-people. Interestingly, the price-to-income ratio improved slightly to 2.32 times, offering more affordability than a decade earlier.
1995: House prices reached £54,008, while joint incomes grew to £29,120. This brought the ratio down to 1.85 times income, making the early ‘90s the most affordable time for homeownership in the last 50 years.
2005: The housing boom of the early 2000s pushed the average house price to £157,627, however, joint salaries grew to just £43,992. Therefore, the house price-to-income ratio spiked to 3.58 times, marking a shift toward more difficult affordability.
2015: House prices continued their upward march, reaching £195,733. Salaries, however, grew more modestly to £54,080 for two people, pushing the house price-to-income ratio to 3.62 times. This period followed the recovery from the 2008 financial crisis, making it harder for many first-time buyers to break into the market.
2025: Fast-forward to today, and the average home costs £272,819 compared to salaries of £70,200 for two people. The result is a record-high house price-to-income ratio of 3.89 times – the steepest of the years analysed.
The average first-time buyer deposits over the last 50 years
Buying your first home is a huge milestone, and it's fascinating to see how the average deposit for first-time buyers has evolved over the decades. Let's take a look at how these deposits have changed, both in absolute terms and as a percentage of the average annual salary:
Year | Average Deposit | % of Annual Salary for 2-People |
---|---|---|
1975 | £588 | 12.6% |
1985 | £2,158 | 14.4% |
1995 | £3,597 | 12.4% |
2005 | £16,535 | 37.6% |
2015 | £22,469 | 41.6% |
2025 | £55,029 | 78.4% |
Looking at these stats, it's shocking to see how dramatically the landscape has changed over the years. The most striking shift is visible in recent decades:
In 1995, the average deposit was just 12.4% of two people's annual salary.
Just ten years later, in 2005, this figure had quadrupled to over a third (37.6%) of an average yearly income for two.
Today, the average deposit consumes a staggering 78.4% of a joint annual salary.
Mojo's deposit saving calculator can help show you how this measures up against what you need to save today to hit your home-buying goals.
How saving timeframes for first-time buyers has changed over 50 years
Taking into account the average deposit and salary over the last 50 years, we’ve calculated how long it would take the average couple to save enough for a deposit if they set aside 20% of their monthly income. Here’s how these timeframes have evolved over the past 50 years:
Year | Time to Save a Deposit |
---|---|
1975 | 8 months |
1985 | 9 months |
1995 | 8 months |
2005 | 1 year, 11 months |
2015 | 2 years, 1 month |
2025 | 3 years, 11 months |
These numbers tell a compelling story about the changing journey to homeownership. In 1975, you could save up for a deposit in just eight months by stashing away 20% of your joint monthly income.
By 2025, that timeframe has stretched to an extra three years and three months. This dramatic shift highlights the impact of rising prices and stagnant wages, making the dream of owning a home feel increasingly distant for many aspiring buyers - even for those buying with someone else.
Despite the challenges, first-time buyer activity is up 9% in 2025
Despite the challenges outlined in our analysis, it’s important to remember that homeownership is still achievable for many first-time buyers.
In fact, our research has shown encouraging trends in the market - the percentage of our customers who are first-time buyers has increased by 9 percentage points this year. So whilst the path to homeownership may seem longer to achieve than it did for previous generations, it remains within reach for many people - and it can for you, too.
As mortgage brokers, we can help you understand your options and find the best path forward. Whether it’s finding you the best mortgage deal from our 70+ lenders, advising on savings strategies, or helping you understand government schemes, our expertise can help you become a homeowner.
How the average first-time buyer has changed over the last 50 years
Here are our uncovered statistics for each year analysed.
1975
Average salary for 2-people: £4,680
Average house price: £10,978
Average deposit: £588
Average deposit as % of income: 12.56%
Average deposit as % of house: 5.36%
Average years to save for a deposit: 8 months
1985
Average salary for 2-people: £14,976
Average house price: £34,700
Average deposit: £2,158
Average deposit as % of income: 14.41%
Average deposit as % of house: 6.22%
Average years to save for a deposit: 9 months
1995
Average salary for 2-people: £29,120
Average house price: £54,008
Average deposit: £3,597
Average deposit as % of income: 12.4%
Average deposit as % of house: 6.66%
Average years to save for a deposit: 8 months
2005
Average salary for 2-people: £43,992
Average house price: £157,627
Average deposit: £16,535
Average deposit as % of income: 37.59%
Average deposit as % of house: 10.49%
Average years to save for a deposit: 1 year and 11 months
2015
Average salary for 2-people: £54,080
Average house price: £195,733
Average deposit: £22,469
Average deposit as % of income: 41.55%
Average deposit as % of house: 11.48%
Average years to save for a deposit: 2 years and 1 month
2025
Average salary for 2-people: £70,200
Average house price: £272,819
Average deposit: £55,029
Average deposit as % of income: 78.39%
Average deposit as % of house: 20.17%
Average years to save for a deposit: 3 years and 11 months
Sources
We used an array of external data to calculate the figures:
The average salary
The average house price
We used Nationwide's House Price Index's Q3 figure for every year
The average deposit
This was calculated by using the average deposit % along with the above house price. A simple way to do this is using our Home Deposit Saving Calculator The following deposit percentages are as follows:
1975 - 5.36% - Independent
1985 - 6.22% - "
1995 - 6.66% - "
2005 - 10.49% - "
2015 - 11.48% - "
2025 - 20.17% - Mojo Mortgages’ internal data