Does your salary match the level needed to own a home in Britain? If you use the average for your industry, the answer is probably ‘no’, new research shows.
Research by Go.Compare Home Insurance has revealed that even workers in the highest paid sectors don’t earn enough to earn the amount needed to get on the property ladder.
The comparison site has calculated that the average salary a single person needs to earn to buy a home is £59,307.
Yet analysis of average earnings across the country by the Office for National Statistics (ONS) shows that no sector offers an average wage high enough to meet this.
There are industries that offer wages closer to this level than others.
Best professions for affordability
Workers in the electricity, gas, steam and air conditioning sectors are the most likely to earn enough to afford a home, according to the research. They earn just £8,779 less than the amount required.
Furthermore, those working in the finance and insurance sectors were closest to the amount required to own a home, earning on average £11,110 less than the required salary.
Other industries that fall just short include mining and quarrying, information and communications, and professional, scientific and technical activities.
| Industry | Gross median annual salary, full-time (£) |
| Supply of electricity, gas, steam and air conditioning | 50,528 |
| Financial and insurance activities | 48,197 |
| Mining and quarrying | 46,978 |
| Information and communication | 44,733 |
| Professional, scientific and technical activities | 41,453 |
| Salary needed to own a house | 59,307 |
(Source: Go.Compare)
Worst industries in terms of affordability
But there are also other industries where average salaries were well below the amount needed to own a home, according to Go Compare’s calculations.
It says workers in accommodation and food services, agriculture, forestry and fishing and other services all earn less than £30,000. This left a large gap between required salaries.
Workers in the household goods and services sector were furthest from their goal: they would have to double their salaries to acquire their own home.
Domestic workers, such as cooks, gardeners, drivers, carers, babysitters, teachers and secretaries, earned on average just over £25,000 annually, meaning they would face a huge annual deficit of more than £34,000 in their attempt to buy a home to buy.
| Industry | Gross median annual salary, full-time (£) |
| Household goods and services – domestic workers | 25,085 |
| Accommodation and food service | 25,522 |
| Agriculture, forestry and fishing | 29,355 |
| Other service activities | 29,692 |
| Wholesale and retail trade; repair of cars and motorcycles | 29,963 |
| Salary needed to own a house | 59,307 |
(Source: Go.Compare)
Nathan Blackler, home insurance expert at Go.Compare, said: “It is shocking to see that not even one of our industries offers wages high enough for its workers to afford a home.
“Although these are just average salaries, this is the difficult situation that most tenants and residents who have not yet purchased a home find themselves in.
“If home ownership is so unattainable, more must certainly be done. Many of those looking to get on the property ladder believe there should be extra help for first-time homebuyers, whether that’s through subsidized house prices, stamp duty relief or improved government schemes such as help to buy ISAs, shared ownership or 99% mortgages.”