Buying a house is tough – very tough (Image: Getty)
Buying your first home in the UK is tougher than ever. A number of household bills are set to rise in April, the UK has a shortage of houses, and economic growth remains sluggish.
On top of that, house prices are high and climbing, remain well above the historic lows of the 2010s, and much of the world is still reeling from a cost-of-living crisis.
It is not all bad, with inflation much lower than a year ago and salaries continuing to outstrip inflation, but it still remains a tough market out there.
One financial expert has taken to social media to explain just how tough it is. Sammie Ellard-King, a financial expert and Money Content Creator of the Year 2024, broke down some of the figures showing just how tough it is to buy a home now compared to 30 years ago.
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“It’s now harder than ever to get on the housing ladder,” he said. “I really do feel for young people as it’s not easy. This isn’t going to get easier. House prices are predicted to rise dramatically over the coming years so maximising every bit of help you can get is key
“Here’s what you would have been paying just 30 years ago for a house versus today in the UK. In 1995, the median UK salary was £14,326. The average UK house price was £55,000, which was 3.8 times your salary. In 2025, the median UK salary is £37,430. The average UK house price is £298,000, and that is 7.9 times your salary. If house prices had increased at the same rate as wages, the average UK home would cost £146,000 today.
“And then let’s look at the deposit. In 1995, the 10 per cent deposit would be £5,500. Saving 10 per cent of your salary per year would be £1,432 saved per year, which would take you just under four years.
In 2025, a 10 per cent deposit would be £29,800. Saving 10 per cent of your salary a year is £3,743, and that would take you just under eight years.”
“But Sammie, we had higher rates in 1995. Yes, you did. In 1995, the average rate was 7.5 per cent. Monthly repayments would have been £383 based on a 10 per cent deposit and a 25-year term. But in 2025, the average rate is 5 per cent, and that monthly repayment would be £1,570 based on exactly the same terms, so it would take you double the amount of time to save for a deposit, and it would be 5x the cost despite rates actually being lower.
“House prices today have doubled compared to wages, rent is through the roof, and essential bills take up more of your salary than ever. The system isn’t broken, it’s working exactly as it’s intended – for those who already own homes.
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“To get a bit of extra help look as a first time buyer into Lifetime ISAs. You can add £4,000 a year and get 25% from the government added towards your first home. Plus you and a partner (if both first time buyers) can combine them when you buy – essentially double bubble.”
Having said that, there are reports that house prices are being slashed this month due to upcoming stamp duty changes. March 31 sees major alterations to the Stamp Duty Land Tax (SDLT), and there are suggestions prices are being dropped by sellers to entice buyers before the changes take effect.
First-time buyers do not pay SDLT on homes priced up to £425,000. Existing homeowners currently pay no stamp duty on properties up to £250,000, but this threshold is set to reduce to £125,000 from April 1, with a 2 percent charge then added on the next £125,000 portion from £125,001 to £250,000.