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.

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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 Land Registry          
Average deposits Halifax          
50/30/20 savings rule The Balance          

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