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These are the 10 most and least affordable London boroughs for buyers on an average annual wage


10-09-2016

 
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The London housing market is still out of many residents' price range (Source: Getty)

London may have fallen out of the UK's top three regions for house price growth, but gaining a foothold on the capital's property ladder is still out of the range of many first-time buyers - and is unlikely to change anytime soon.

The average London house price is 14 times higher than the average annual wage of 34,320, online estate agent eMoov.co.uk has found.

In an analysis of data from the Office for National Statistics, eMoov.co.uk found the cheapest London borough for those wishing to buy property on an average local wage was Barking and Dagenham, closely followed by Tower Hamlets.

In these areas, house prices were 11 times average salaries, reaching 271,584 and 457,392 in Barking and Dagenham and Tower Hamlets respectively.

Cheapest London boroughs: Average house prices vs local annual wage

 

 


1. Barking and Dagenham 271,584 vs 24,596 (11 times higher)

2. Tower Hamlets 471,584 vs 39,936 (11 times higher)

3. Hounslow 389,973 vs 30,160 (13 times higher)

4. Hillingdon 404,502 vs 28,392 (14 times higher)

5. Bexley 319,307 vs 21,684 (15 times higher)

6. Greenwich 368,822 vs 24,648 (15 times higher)

7. Newham 355,950 vs 23,712 (15 times higher)

8. Croydon 360,845 vs 23,868 (15 times higher)

9. Southwark 517,234 vs 33,540 (15 times higher)

10. Havering 340,162 vs 21,892 (15 times higher)

(Source: ONS)

At the other end of the scale, although house prices have fallen six per cent in the last year in Kensington and Chelsea (or even as high as 10 per cent according to Knight Frank), perhaps unsurprisingly the borough still has the highest wage-to-house-price ratio.

Property in the area is a whopping 46 times higher than the average borough salary of 26,624.

Read more: This is how the sterling crash flash will affect UK house prices

In its analysis, eMoov.co.uk found there were fifteen other boroughs in which the average house price was over 20 times the local area's average wage, including Camden, Merton, Kingston upon Thames and Islington.

The 10 most expensive London boroughs for an average wage

LONDON BOROUGH AVERAGE HOUSE PRICE AVERAGE WAGE RATIO
Kensington and Chelsea 1,212,375 26,62446 46 times higher
City of Wesminster 1,028,617 33,020 31 times higher
Kingston upon Thames 659,636 25,636 26 times higher
Hammersmith and Fulham 746,570 29,120 26 times higher
Camden 809,804 32,084 25 times higher
Wandsworth 606,891 26,260 23 times higher
Harrow 442,348 19,292 23 times higher
Haringey 555,638 23,296 22 times higher
Merton 514,595 23,296 22 times higher
Barnet 524,735 28,816 22 times higher

Founder and chief executive of eMoov.co.uk, Russell Quirk, said the figures showed what a "monumental task" awaits Londoners who try to get on the capital's property ladder and highlights that "something should be done at both ends of the spectrum" to help them.

Quirk added:

London is of course one of, if not the, most unaffordable city to live in where the price of property is concerned.

However, on top of this wages have failed to keep pace with the rapidly inflating cost of getting on the ladder for some time now, making the prospect of living and working in London an unsavoury one for many.

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