The salary you need to buy a home in London

Evening Standard

The gap between average earnings and house prices in London makes for a pretty grim calculation, despite a year of weak growth providing marginal improvement to affordability.Exclusive data from Zoopla shows that the annual income needed to buy a home in London is now £101,080, given that the average house price in the capital is £535,100, which is 2.4 times — or £59,499 — higher than most London salaries.

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00:00How much would you need to earn to buy property in London?

00:02According to Zoopla, the annual income needed to buy a home in the capital is £101,000,

00:08which is a problem because the median salary here is just over £41,000.

00:12In fact, the average income needed to buy is over double the median salary in 26 of the 33 boroughs,

00:19leaving a lot of people frozen out of the market.

00:22London's most expensive borough is Kensington and Chelsea,

00:24because an average house price of £1.1 million means you'll need to earn £215,000 annually,

00:30which is five times the average income.

00:32Other boroughs topping the most expensive list include Richmond-upon-Thames,

00:35which requires an average income of £143,000,

00:39Camden, which requires £147,000,

00:42and Westminster at £181,000.

00:45If you're looking for something more affordable, your best bet is Barking and Dagenham,

00:49which, according to the study, has the lowest average income needed to buy.

00:52How much? £63,000, which, if you're doing your maths,

00:55is still £22,000 more than the average worker earns.

00:59Other more affordable boroughs include Croydon at £74,000,

01:03Bexley at £75,000,

01:05and Newham at £76,000.

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