Prospective homeowners in Plymouth are facing a challenging situation, as they need to earn nearly £43,000 annually to afford the average home in the city. According to the latest figures from the Land Registry, homes purchased in Plymouth in the year up to December 2024 had an average price of £214,000.

To buy an average home, buyers would need a mortgage of up to £192,600, assuming a 10% deposit. Based on the typical income-to-loan ratio of 4.5, a potential homeowner would need an income of £42,800 to secure a 90% mortgage. This figure exceeds the typical full-time salary in Plymouth, which stands at £34,076, leaving a shortfall of £8,724.

Despite this income gap, Plymouth remains the most affordable location in Devon for homebuyers. The required income to purchase the average home in other areas, such as South Hams, can reach up to £76,800, making Plymouth significantly more affordable in comparison. Nationally, the average income needed to afford an average home stands at £53,600.

Other areas in Devon, such as Torridge, require an income of £55,000 for a typical mortgage, while the South Hams region has the highest affordability gap, requiring an income of £76,800 for a 90% mortgage.

The situation in Plymouth reflects broader challenges faced by many regions in the UK, where home prices outpace local wages. In London, for instance, the gap is even more pronounced, with areas like Kensington and Chelsea requiring an income of over £200,000 to afford a typical home.

In the North of England, York also faces a significant gap, where the average salary of £36,972 falls £23,628 short of the income required to buy an average home.

In conclusion, while Plymouth remains more affordable than other areas in Devon and the UK, prospective homeowners still face significant financial hurdles to purchase property in the area.