Living in London: The Average London House Price is 14 Times the Wage

Oct 10, 2016

Our latest research has highlighted the struggle of living and working in the capital by analysing the gap between the cost of property and the average wage. The research found that on average, house prices in London are 14 times the average annual wage.

Using data from the ONS and Land Registry we looked at each borough of London to work out the deficit between working there and getting on the local ladder. As well as London as a whole.

See the full UK report here.

Across the capital the average house price is 14 times the average annual wage of £34,320.

The largest gap was of course, in Kensington and Chelsea, where the average wage is just £26,624, but the average house price is £1.2m, 46 times the wage.

There were 15 other boroughs where the average house price was over 20 times the average wage in the borough.

The remaining 19, including the City of London, were all still home to an average house price between 11 and 18 times the average wage on offer.

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.

This research shows the monumental task facing would be Londoners and highlights that something must be done at both ends of the spectrum to help them.

Russell Quirk

Founder & CEO,

London BoroughCurrent Average House Price12 Month Change (%)Annual Wage Wage to House Price Ratio
Kensington And Chelsea£1,212,375 -6%£26,624 46
City of Westminster£1,028,617 11%£33,020 31
Richmond upon Thames£659,636 9%£25,636 26
Hammersmith and Fulham£746,570 -3%£29,120 26
Camden£809,804 5%£32,084 25
Wandsworth£606,891 9%£26,260 23
Harrow£442,348 10%£19,292 23
Haringey£555,638 18%£24,908 22
Merton£514,595 15%£23,296 22
Barnet£524,735 11%£23,816 22
Kingston upon Thames£496,705 16%£22,932 22
Waltham Forest£422,049 20%£20,072 21
Islington£657,755 1%£32,552 20
Brent£504,644 16%£25,064 20
Ealing£489,987 14%£24,908 20
Hackney£517,715 0%£26,416 20
City of London£835,689 8%£45,240 18
Bromley£430,937 13%£24,128 18
Redbridge£401,199 19%£22,568 18
Enfield£386,182 18%£22,412 17
Lambeth£514,820 10%£30,420 17
Lewisham£408,027 17%£24,648 17
Sutton£369,674 17%£22,880 16
Havering£340,162 20%£21,892 16
Southwark£517,234 11%£33,540 15
Croydon£360,845 20%£23,868 15
Newham£355,950 21%£23,712 15
Greenwich£368,822 12%£24,648 15
Bexley£319,307 19%£21,684 15
Hillingdon£404,502 17%£28,392 14
Hounslow£389,973 12%£30,160 13
Tower Hamlets£457,392 6%£39,936 11
Barking and Dagenham£271,584 19%£24,596 11
London£484,71612%£34,320 14