On this page
- of new homes for sale are within reach of £40,000
- 3%
- are within reach of £60,000
- 23.4%
- the middle asking price of a new home in England
- £399,995
- income: the line lenders’ rules draw
- 4.5×
How the figures work
There is no single answer to how much a household can borrow: every lender has its own affordability model, which looks at income, outgoings, debts and the rate it would charge. But there is a line that almost every mortgage stays under. The Bank of England's Prudential Regulation Authority limits lending at 4.5 times income or more to 15% of new mortgages, so for most buyers 4.5 times household income is the most a lender will offer.
So the figures here take a household income, multiply it by 4.5, and add a deposit of 10% of the price. A household on £40,000 can borrow up to £180,000 at that multiple; with a 10% deposit that buys a home of up to £200,000. Then we count the new homes for sale in England at or below that price.
Source: NewHomeSearch listings: every new home for sale in England, read 12 November 2026.
Show the figures
| Household income | Reaches up to | Homes | Share |
|---|---|---|---|
| £30,000 | £150,000 | 118 | 0.6% |
| £40,000 | £200,000 | 578 | 3% |
| £50,000 | £250,000 | 2,041 | 10.7% |
| £60,000 | £300,000 | 4,479 | 23.4% |
| £75,000 | £375,000 | 8,420 | 44% |
| £100,000 | £500,000 | 14,359 | 75% |
Household income means the income of everyone on the mortgage together. Two people earning £30,000 each are a £60,000 household. Your own figure could be lower if you have debts, childcare costs or a car loan, and a few lenders go higher for some professions or incomes. This is an illustration of the market, not advice on what you can borrow.
What £30,000 buys
On a household income of £30,000 the reach is £150,000, which is 118 of the new homes for sale: 0.6% of the market. For comparison, the middle asking price of a 1 bedroom new home in England is £274,950, and of a 2 bedroom home £285,000.
At this income the schemes matter. Shared ownership lets you buy a share of a home and pay rent on the rest, and some councils sell homes with a discount for local first-time buyers. The schemes page sets out each one with its rules, and what replaced Help to Buy explains the options since that scheme closed.
What £40,000 buys
At £40,000 the reach is £200,000, which covers 578 homes, or 3% of the market. For comparison, the middle asking price of a 2 bedroom new home in England is £285,000, and of a 3 bedroom home £345,000.
The gap between regions is wide at this income. In North East, 8.3% of the new homes for sale are within reach of £40,000; in London, only 0% are.
£50,000 and £60,000
At £50,000 the reach is £250,000, covering 10.7% of the homes for sale. At £60,000 it is £300,000, covering 23.4%. For comparison, the middle asking price of a new home in England is £399,995: a household reaches half of the market once its reach passes that figure.
In North East, a £60,000 household is within reach of 46.5% of the new homes for sale; in London, 3.8%.
People also ask
What salary do you need for a £400,000 house in the UK?
Borrowing 4.5 times income with a 10% deposit, a £400,000 home needs a household income of about £80,000. For a £300,000 home it is about £60,000, and for £250,000 about £50,000.
Can I get a £200,000 mortgage on a £40,000 salary?
At 4.5 times income, a £40,000 salary borrows up to £180,000, so £200,000 is above the line most lenders work to. Lenders may lend at 4.5 times income or more on a limited share of their mortgages, and a joint application adds both incomes.
£75,000 and £100,000
At £75,000 the reach is £375,000, or 44% of the market, and at £100,000 it is £500,000, or 75%. Above about £75,000 the limit is less often the income multiple and more often the deposit: a 10% deposit on a £500,000 home is £50,000, before stamp duty.
Region by region
The share of each region's new homes for sale that each income reaches:
| Region | £30,000 | £40,000 | £50,000 | £60,000 | £75,000 | £100,000 |
|---|---|---|---|---|---|---|
| South East | 0.1% | 1.7% | 4.5% | 8.3% | 18.6% | 50% |
| East Midlands | 1.1% | 3.4% | 12.9% | 30.9% | 54.6% | 84.2% |
| East of England | 0.7% | 1.8% | 5.1% | 12.7% | 30.4% | 63.1% |
| West Midlands | 0.5% | 2.1% | 10.3% | 23.4% | 52.1% | 85.7% |
| North West | 0.7% | 2.8% | 7.7% | 23.4% | 45.9% | 81.9% |
| Yorkshire and The Humber | 1% | 5.4% | 21.7% | 41.5% | 60.7% | 88.1% |
| South West | 0.2% | 1.5% | 6.6% | 18.5% | 43.5% | 80% |
| North East | 0.9% | 8.3% | 26.7% | 46.5% | 74.2% | 94.8% |
| London | 0% | 0% | 0% | 3.8% | 13.2% | 40.7% |
Source: NewHomeSearch listings: every new home for sale in England, read 12 November 2026.
Each row is one region, and each column one household income. The cheaper the region's homes, the sooner its row fills in. For reference, the middle asking price of each region's new homes for sale:
Source: NewHomeSearch listings: every new home for sale in England, read 12 November 2026.
Show the figures
| Region | Middle price | Per sq ft | Homes |
|---|---|---|---|
| South East | £504,725 | £445 | 3,270 |
| East Midlands | £360,000 | £310 | 3,229 |
| East of England | £450,000 | £405 | 2,793 |
| West Midlands | £370,000 | £325 | 2,196 |
| North West | £389,995 | £320 | 2,164 |
| Yorkshire and The Humber | £334,995 | £294 | 1,973 |
| South West | £394,995 | £375 | 1,809 |
| North East | £310,000 | £254 | 1,645 |
| London | £550,000 | £698 | 844 |
If you are open to where you live, the cheapest places to buy a house in England ranks every council area by the middle asking price of its new homes.
The cash you need on top
A deposit is not the only money you need on the day. Stamp duty is charged on the part of the price above £125,000 for a home mover; a first-time buyer pays none up to £300,000, as long as the price is no more than £500,000. Then there are legal fees, a survey, mortgage fees and moving costs.
Our article on how much deposit you need for a new build works out the deposit and the stamp duty on the middle price in every region, and the cash needed calculator adds up every cost on a real home.
Find the homes your income reaches
Type your income and deposit into the mortgage affordability calculator to see your own reach, from the same rules, or put them into the search on new homes by place with where you want to live: the results show only the homes your figures reach. A builder's deposit contribution or paid stamp duty can stretch a budget further, and the incentives page lists the biggest offers on sale today.
Find the new homes your budget reaches
Type your income and deposit: the calculator works out what you could borrow and shows the new homes it reaches, with the cash you need on the day.
Check what you can affordHow we worked it out
The reach at each income is the income times the loan-to-income multiple in force today, 4.5, divided by 0.9, so that the loan is 90% of the price and the deposit 10%. The multiple is a dated rule NewHomeSearch reads from the Prudential Regulation Authority's own statement of the limit; when the rule changes, every figure here changes with it.
The homes counted are every new home for sale in England with a stated price, read each day from the builders' own websites and the listings portals through HomePortfolio. Shared ownership homes that state only a share price are left out, because a share price is not the price of the home. The figures are worked out again from the day's listings each time the page is opened. They are an illustration, not advice: a lender's own assessment decides what you can borrow.
Frequently asked questions
What house can I afford on a £40,000 salary?
Borrowing 4.5 times income with a 10% deposit, a £40,000 household income reaches homes up to £200,000. That covers 3% of the new homes for sale in England today.
How much house can I afford on £30,000 a year?
At 4.5 times income plus a 10% deposit, up to £150,000, which is 0.6% of the new homes for sale in England. Shared ownership and local discount schemes can reach further.
What can a couple on £60,000 afford?
A joint income of £60,000 reaches homes up to £300,000 at 4.5 times income with a 10% deposit: 23.4% of the new homes for sale.
How many times my salary can I borrow?
Most lenders lend up to 4.5 times household income, because the Prudential Regulation Authority limits lending at that multiple or more to 15% of new mortgages. Each lender decides your own figure from your income and outgoings.
Where can I buy a new build on an average salary?
On £40,000, North East has the highest share of new homes within reach, at 8.3%, and London the lowest, at 0%.
How much house can I afford on £50,000 a year?
Borrowing 4.5 times income with a 10% deposit, a £50,000 household income reaches homes up to £250,000: 10.7% of the new homes for sale in England today.
Sources
- NewHomeSearch: the new homes for sale in Englandbuilders' websites and listings portals, via HomePortfolio
- Bank of England: High loan to income lending (SS2/26)bankofengland.co.uk
- GOV.UK: Stamp Duty Land Tax: residential property ratesgov.uk
- FCA Handbook: MCOB 11.6, responsible lendinghandbook.fca.org.uk
Information only, not financial advice. NewHomeSearch is independent: it does not sell homes, arrange mortgages or take payment from builders. Read how we work out every figure.
From the guides:Mortgage affordability: how lenders decide what to lendMortgage in principle: what it is and how to get oneNew build first time buyer guide: schemes and costs