Prospective homeowners in Somerset need to earn over £56,000 a year to afford the average home, according to the latest figures from the Land Registry, highlighting the growing gap between wages and house prices.

In the Somerset Council area, the average house price reached £282,000 in the year to December 2024. With most lenders requiring a 10% deposit, buyers would need a mortgage of £253,800. Given that mortgage lenders typically offer loans up to 4.5 times a buyer's salary, an income of at least £56,400 is required to secure a mortgage on an average-priced home in Somerset.

However, the average full-time salary in the county is just £35,147, leaving a shortfall of £21,253 for those trying to get on the property ladder.

The affordability gap is even wider in Bath and North East Somerset, where buyers would need an income of £82,000, £42,163 more than the average local salary.

In North Somerset, the required income stands at £61,800, which is £22,805 above the average wage.

Buying a home today vs 30 years ago

Sammie Ellard-King, a financial expert and Money Content Creator of the Year 2024, broke down the figures to show just how difficult it is to buy a home today compared to previous generations.

"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," he said.

"Though unemployment remains relatively low, house prices have continued to outstrip real wage growth since the financial crisis in 2008. As a result, deposit raising and affordability continue to be significant barriers for younger people wanting to get onto the property ladder."

Andrew Asaam, Homes Director at Lloyds Banking Group, explained how much harder it has become for young, single buyers.

"The chances of a young single person being a homeowner today are lower than for couples—11 percent compared with 52 percent—and these relative odds have grown over time. In 1989, young couples were around three times as likely to be homeowners than singles; by 2019, this increased to almost five times, as dual-earner couples have become the norm.

"Back in 2000, the average UK property price was £80,000, with an average deposit of £8,000. Today, the average house price has risen to £290,000, with an average deposit of £53,000. Whilst average UK salaries have increased from £20,000 in 2000 to £35,000 today, this has not been enough to keep pace with rising housing costs.

"When adjusted for inflation, the purchasing power of today's buyers is not what it once was, with monthly mortgage payments at the highest share of income for 15 years. Sixty-seven percent of 25-34-year-olds who cannot buy a home today cite the cost of a deposit as a barrier, while 41 percent report they are unable to service a mortgage.

"One of the main causes of all this is the lack of available homes for young adults—including those who are renting. Really, there's nothing that suggests the market is going to get easier for this demographic in 2025."

Help for first-time buyers and stamp duty changes

Despite the challenges, there are still ways for first-time buyers to get onto the ladder.

Sammie Ellard-King advised: "To get a bit of extra help, look into Lifetime ISAs. You can add £4,000 a year and get 25 percent from the government towards your first home. Plus, you and a partner (if both first-time buyers) can combine them when you buy—essentially double bubble."

There are also reports that house prices are being slashed this month due to upcoming stamp duty changes. On March 31, major alterations to Stamp Duty Land Tax (SDLT) will take effect, with suggestions that sellers are dropping prices to entice buyers before the changes kick in.

Currently, first-time buyers do not pay SDLT on homes priced up to £425,000. Existing homeowners pay no stamp duty on properties up to £250,000, but from April 1, this threshold will reduce to £125,000, with a 2 percent charge on the next £125,000 (£125,001 to £250,000).

With house prices, mortgage rates, and stamp duty all in flux, the next few months could prove crucial for those hoping to buy in Somerset.