These jobs face a 100-year wait to buy a home

29 August 2018

Workers on lower incomes could face a wait of more than 100 years before their dreams of home ownership become a reality, according to Housesimple.

The online estate agent has highlighted 30 jobs, including retail cashier, childcare worker and bartender, where the average salary would require the worker to save for at least 100 years before they would have enough for a house deposit. This figure assumes no financial help from loved ones.

The problem stems from the rigorous lending criteria that mortgage providers currently apply, as well the higher average cost of housing in the UK.

For example, a hairdresser or barber earning an average £14,673 per year would be able to borrow a maximum mortgage of £58,692 (4.5 times their earnings). With the average house in the UK priced at £226,351, the individual would require a deposit of £167,659. If they put aside 10% of their net income each year towards this, it would take 125 years and five months to save enough to buy a home.

Sam Mitchell, chief executive of Housesimple explains: “Although house price growth has slowed, particularly in London, affordability still remains a major problem in many parts of the UK. The government has launched a number of schemes such as Help to Buy, Right to Buy, Shared Ownership, and Lifetime Isas, but more needs to be done to help people on lower incomes.

“Clearly, no-one is going to be saving for 100 years to buy a property, but these illustrative figures do provide a stark picture of the struggle many buyers working in low paying, but essential jobs, face when it comes to buying a home. Of course, there are many areas of the country where house prices are nowhere near the UK average of £226,351 and will be within reach of people on lower incomes.”

Even in regions such as the North East, where the average house price is much more affordable at £128,680, it would still take the lowest earners up to 54 years to save enough to buy. In London it would take 320 years to save for an average house worth £478,853.

Mr Mitchell adds: “What about those people who are working as cleaners, cooks, hairdressers, in parts of the country such as London and the south, where house prices have boomed since 2008?

“These services are still essential, but the wages don’t reflect the higher cost of living. For many of these people, they are either looking at a lifetime of renting or relying on help from family members to even consider getting a foot on the ladder.”

See the table below for the 30 jobs that would take at least 100 years to save enough for a house deposit:

JobGross annual salary (£)Maximum mortgage loan of x4.5 salary (£)Size of deposit for average property (£)10% net salary put aside every year for deposit (£)No. of years to save required deposit
Bar staff£14,390£57,560.00£168,791.00£1,316.60128.2
Hairdressers and barbers£14,673£58,692.00£167,659.00£1,335.90125.5
Waiters and waitresses£14,833£59,332.00£167,019.00£1,346.70124.0
Check-out operators£15,325£61,300.00£165,051.00£1,380.20119.6
Launderers, dry cleaners and pressers£15,329£61,316.00£165,035.00£1,380.50119.5
Kitchen and catering assistants£15,402£61,608.00£164,743.00£1,385.40118.9
nursery nurses and assistants£15,607£62,428.00£163,923.00£1,399.40117.1
Cleaners and domestics£15,901£63,604.00£162,747.00£1,419.40114.7
Shelf fillers£15,992£63,968.00£162,383.00£1,425.50113.9
Care escorts£16,124£64,496.00£161,855.00£1,434.50112.8
School midday and crossing patrol£16,166£64,664.00£161,687.00£1,437.40112.5
Fishmongers and poultry dressers£16,181£64,724.00£161,627.00£1,438.40112.4
Educational support assistants£16,217£64,868.00£161,483.00£1,440.80112.1
Pharmacy and other dispensing assistants£16,226£64,904.00£161,447.00£1,441.50112.0
Teaching assistants£16,292£65,168.00£161,183.00£1,445.90111.5
Sewing machinist£16,495£65,980.00£160,371.00£1,459.70109.9
Sales assistants£16,641£66,564.00£159,787.00£1,469.70108.7
Retail cashiers£16,743£66,972.00£159,379.00£1,476.60107.9
Vehicle valeters and cleaners£16,956£67,824.00£158,527.00£1,491.10106.3
Care workers and home carers£17,512£70,048.00£156,303.00£1,528.90102.2
Dental nurses£17,799£71,196.00£155,155.00£1,548.40100.2
Packers, bottlers, canners and fillers£17,830£71,320.00£155,031.00£1,550.50100.0
Street cleaners£17,887£71,548.00£154,803.00£1,554.4099.7

Source: Housesimple, August 2018



In reply to by anonymous_stub (not verified)

but the people in the jobs listed above never would have been able to get a mortgage, how did us baby boomers do it? we worked over time, done 2 jobs, drove a cheap old banger, spent our holidays working on our homes, snowflakes don't want to know about hard work or long hours, they seem to think it's their right, the entitled generation, will they wake up to reality? mmmm doubtful.

In reply to by anonymous_stub (not verified)

In 1995 I couldn't sell my three bed house on the South Coast for £52000 having paid £65500 for it six years earlier.Who knows what house prices will be in ten years time ?

In reply to by anonymous_stub (not verified)

So we should all expect an averaged priced UK home as a starter home even if we can't afford it, do as we did years ago, start at the bottom and work your way up the ladder. Why is it the low priced homes are not being bought as soon as they come on the market by these so called low paid, they are available cheaper than renting, cut back on other things like we did to get a deposit together and be prepared to take on a property you can improve with your own effort. Today they want everything handed to them on a plate and not do without anything.

In reply to by andrew townshend (not verified)

I’m not sure if you’re aware of how ignorant your comment is Mr Townshend. I am a 23 year old ‘snowflake’ and the way you have described me couldn’t be further from the truth, like you I work overtime, (in my retail banking job may I add) any hours I am offered I take, I am not allowed a second job due to company policy. I don’t drive at all in order to save money, I don’t party or drink except for once or twice a year at family occasions (where the baby boomers of my family are all completely wasted!) and yet I still cannot afford a mortgage. I think it would be wise of you to take the time to research things before posting and opinion on a matter you are ill informed on, as quite frankly you have made yourself look ridiculous. Kindest regards, a lazy snowflake.

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