London Housing: Income Requirements Far Exceed Average Earnings
The gap between London house prices and what people actually earn has never been wider. New figures reveal that the average London home now requires an annual salary of £101,080—more than double the city’s median wage of £41,500. For many, the idea of homeownership in the capital feels increasingly unrealistic.
These calculations assume a 15% deposit and a mortgage at 4.5 times the buyer’s income, meaning even those with solid savings will struggle to meet the threshold. And if you’re hoping for a more affordable option, be warned—there’s little respite. The borough with the lowest salary requirement, Barking and Dagenham, still demands an income of £63,620 to buy an average home.
At the other end of the scale, property in Kensington and Chelsea—London’s most expensive borough—requires an eye-watering £214,750 per year just to qualify for a mortgage. The trend continues across central London, where boroughs like Westminster (£180,860), Camden (£147,000), and Richmond (£142,990) all require six-figure salaries to own a home.
This vast gap between wages and property prices raises serious questions about affordability. In more than three-quarters of London’s boroughs, the income needed to buy a house is more than double the median salary. Even traditionally “affordable” areas are creeping out of reach for those on average wages, further fuelling concerns about London’s housing crisis.
While government schemes exist to help first-time buyers, they barely scratch the surface of a market where homeownership is becoming a luxury rather than an achievable goal. With property values remaining high and wages struggling to keep pace, many Londoners are left wondering whether renting—often just as expensive—is the only viable long-term option.
If you’re curious to see how London house prices compare across different London boroughs, this breakdown provides a detailed look at income requirements in each area.
For more updates on housing affordability in London and further insights, visit EyeOnLondon. We’d love to hear your views in the comments.
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