The evolution of female homeownership in the UK

A look back: The hurdles of the 1970s

Just 50 years ago, the idea of a woman buying a home on her own was almost unheard of. The financial system was built on assumptions that placed women at a severe disadvantage. Lenders could refuse a mortgage application from a woman simply because she was unmarried. The prevailing belief was that a woman's income was secondary or temporary, making her a riskier borrower.

For many women who dared to apply for a mortgage, the process was often humiliating. It was common practice for banks and building societies to require a male guarantor, usually a husband or father, to co-sign the loan. This requirement effectively stripped women of their financial independence, tying one of the biggest purchasing decisions of their lives to a man's approval and financial standing.

A turning point: Sex Discrimination Act of 1975

The tide began to turn with the introduction of landmark legislation.

The Sex Discrimination Act of 1975 was a pivotal moment for women's rights in the UK, making it illegal to discriminate on the grounds of gender in the provision of goods, facilities, and services. This included mortgages.

For the first time, lenders were legally prohibited from refusing a mortgage to a woman based on her gender or marital status. This act was the key that unlocked the door to homeownership for millions of women across the country, empowering a new generation to build their own futures.

The homeownership gap in 2025

While the legal barriers have been torn down, a very real homeownership gap persists. Fast forward to today, and women still face economic challenges that can make buying a home significantly more difficult than it is for men.

One of the largest obstacles is the persistent gender pay gap. The average annual full-time salary in the UK is £40,035 for men but only £34,000 for women. That’s a 16% difference, which has a direct and substantial impact on saving and borrowing power.

Research shows that women need, on average, an extra 8 years and nine months to build up a home deposit compared to their male counterparts. And that’s just to save the deposit!

Based on the standard mortgage-to-salary ratio of 4.5x your income, this means that, on average, a woman can borrow approximately £27,000 less than a man. The average UK home now costs £269,735. To secure a mortgage for a property at this price with a typical 15% deposit, a single buyer would need a mortgage of around £229,274.

Using the standard 4.5x income multiple, a single woman would need to earn £50,949 a year to be approved for that loan. This is over £15,000 more than the average female salary of £34,000, making the dream of homeownership feel out of reach for many.

How is Tembo helping to close the gap?

At Tembo, we believe that your gender should never be a barrier to owning a home. We are on a mission to make homeownership more accessible for everyone. It’s why we are experts in innovative ways to get on the ladder, including solutions to overcome the homeownership many women face.

The journey from the 1970s has been long, and while progress has been made, the path to equal homeownership isn't finished. We are here to help you navigate the final stretch. Don't let outdated systems or economic gaps hold you back.