Financial crisis warning as house deposit prices outstrip average annual salary | Personal Finance | Finance

The Nationwide House Price Index shows that a 20 percent deposit on a typical first-time buyer home equates to over 105 percent of average annual gross income.

As the cost of living crisis continues, those looking to buy a house may feel extra financial pressure as it may seem impossible to afford a deposit.

In November, house prices were two percent lower than the same period in 2022, and 4.3 percent below the all-time high recorded in late summer 2022.

Robert Gardner, Nationwide’s Chief Economist said: “Even though house prices are modestly lower and incomes have been rising strongly, at least in cash terms, this hasn’t been enough to offset the impact of higher mortgage rates, which are still more than three times the record lows prevailing in 2021 in the wake of the pandemic.”