How to become a homeowner on a modest income

Income: The barrier to homeownership

Saving for your own home can often feel like an uphill battle, especially in this economy where slow-growing wages and high property prices collide.

In our most recent buyer intention survey, 35% of respondents (772 out of 2221) said that their salary not being high enough to borrow the amount needed to buy a home was their biggest barrier to homeownership.

Can I get a mortgage on a low income?

According to data collated by Forbes, the average UK gross salary in 2025 is £37,430. Mortgage lenders typically offer loans up to a maximum of 4.5 times your annual salary (though recent mortgage reforms announced by Chancellor Rachel Reeves include increased availability of high-loan-to-income mortgages). Based on the UK average gross salary, this would equate to a mortgage of £168,435. But this is over £100,000 less than the average UK property price, which was reported as £269,000 in the government’s most recent House Price Index for May 2025.

When you consider these figures, it’s clear to see the disparity between average salaries and average property prices. It confirms that the barrier to homeownership that so many aspiring buyers face is very much real.

For an estimate of how much mortgage you can afford based on your income, use our affordability calculator.

Buying schemes: A solution to overcoming the income barrier

If the dream of homeownership seems ever elusive, fear not. There are paths forward, and we have all the information and resources you need to begin your journey.

Government and private developer buying schemes aim to help aspiring buyers onto the property ladder. Each scheme has specific eligibility criteria, including a household income threshold, to help low and middle-income earners become homeowners.

Which buying schemes can help me buy a home?

Shared Ownership

Shared Ownership is a government scheme that allows you to purchase a share in a leasehold home, typically between 10% and 75%, while paying a reduced market rent to a housing association on the remainder. Usually, you can increase your share up to 100% over time.

Shared Ownership income cap: For those with a maximum household income (before taxes) of £80,000 (or £90,000 in London).

Discount Market Sale

Also known as Council Shared Equity, Discount Market Sale lets you purchase a new-build home with a discount, usually around 20%, making them more affordable than homes sold on the open market.

Discount Market Sale income cap: Your household income before taxes should be less than 45% of the Discount Market Sale price of the property.

First Homes

First Homes is a government scheme that enables you to buy a home in your local area with a discount of 30% to 50% off the market value.

First Homes income cap: To qualify for this government-backed scheme, your household income before taxes cannot exceed £80,000 (or £90,000 in London). You must be able to get a mortgage for at least half the price of the home.

Discount Full Ownership

Offered by London housing provider Pocket Living, Discount Full Ownership allows you to purchase 100% of a home with a discount of at least 20% below local market prices.

Discount Full Ownership income cap: For those with a maximum household income of £90,000 (before taxes).

For more information, including detailed eligibility criteria and the associated costs for the various initiatives available, visit our buying scheme hub.

At Share to Buy, we make your choice easier with a selection of new-build homes and resale properties across England, available through alternative homeownership schemes. Get your home-buying journey underway using our property portal.