Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Deposit to income ratio
A home-buying deposit compared with the buyer's or buyers' yearly income.
What it means
Divide the cash deposit needed or paid for a home by the buyer's or buyers' annual income. The result can be shown as a number of years of income or as a percentage. It indicates the size of the upfront saving hurdle, not how long saving will actually take: nobody can usually save all their income. This is different from the deposit as a percentage of the house price, which helps determine the loan to value ratio.
Example
A £40,000 deposit is equal to one year's income for a buyer earning £40,000 a year: the deposit to income ratio is 1, or 100%. If they save £4,000 a year and start from zero, it would take ten years to save that amount, ignoring interest and price changes.
Why it matters
A buyer may have enough income to make monthly mortgage payments but still struggle to save the cash needed before they can buy.
Related terms
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House price to earnings ratio
A house price divided by a year's earnings, showing how many times annual pay the price represents.
Read more -
Housing affordability
Whether people can manage the cost of buying or renting a home.
Read more -
Intergenerational wealth transfer
Money or other wealth passed from an older generation to a younger one.
Read more -
Loan to value ratio
A mortgage loan shown as a percentage of the home's value.
Read more -
Mortgage affordability
Whether a household can manage the payments on a home loan alongside its other costs.
Read more -
Mortgage income multiple
The mortgage amount divided by the borrower's or borrowers' annual income.
Read more
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Guides and insights
Analysis
Clear, accessible analysis of the economic issues shaping everyday life
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Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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