When you hear house price to salary ratio, a measure comparing average home costs to typical earnings in a region. It's not just a number—it's the real gatekeeper to homeownership in the UK. If homes cost six times your salary, you’re not just saving longer—you’re fighting a system built for higher earners. This ratio doesn’t lie. It tells you whether buying is even possible where you live, and why so many people are stuck renting even with steady jobs.
The mortgage affordability, how much a lender will let you borrow based on your income and existing debts depends almost entirely on this ratio. Lenders don’t just look at your salary—they compare it to local home prices. A £70,000 salary might get you a £350,000 mortgage in some areas, but in London or parts of the South East, that same salary might only stretch to £280,000 because homes cost more. That’s the borrowing power, the maximum loan amount a lender approves based on income, credit, and housing costs in action. And if your salary doesn’t keep up with rising prices, your borrowing power shrinks—even if your pay raise looks good on paper.
That’s why shared ownership schemes exist. They’re not just for first-timers—they’re for people who understand that the housing market UK, the current state of home buying, renting, and pricing across the United Kingdom has changed. If you’re wondering why you can’t afford a full mortgage even with a decent income, it’s not you—it’s the ratio. The posts below break down how lenders calculate what you can borrow, how shared ownership lets you get on the ladder even when the ratio is stacked against you, and what real people are doing to make it work. You’ll find guides on salary thresholds, income-based loan limits, and how to spot when a property is truly within reach—or just out of reach.
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