How Much You Need to Earn to Buy a House in Each London Borough

The estimated annual household income required to buy a house in each London borough (excluding the City of London) ranges from £62,980 to £229,149.

The household income required is estimated from the latest average house price in each borough on London Property Guide, with a 20 per cent deposit and a standardised 4.5 times loan-to-income multiple (LTI) - a benchmark that most, but not all, lenders use.

That said, lenders don't treat each borrower the same. Lenders consider multiple variables like deposit amount, household income, credit file, employment status, income type (employed versus self-employed), repayment period, and more.

We use the 20 per cent deposit and 4.5 times loan-to-income multiple as an assumption across all London boroughs to make the annual household income required comparable.

The three London boroughs that require the highest annual household incomes to buy a house are Kensington and Chelsea, the City of Westminster, and Camden.

Kensington and Chelsea - with a £1,288,963 average house price - requires the highest annual household income to buy a house at £229,149.

The City of Westminster ranks below Kensington and Chelsea in the annual household income required to buy a house. The City of Westminster - with a £920,193 average house price - requires the second-highest annual household income to buy a house at £163,590.

Camden ranks below the City of Westminster in the annual household income required to buy a house. Camden - with a £888,731 average house price - requires the third-highest annual household income to buy a house at £157,997.

The three London boroughs that require the lowest annual household incomes to buy a house are Barking and Dagenham, Newham, and Croydon.

Barking and Dagenham - with a £354,262 average house price - requires the lowest annual household income to buy a house at £62,980.

Newham ranks above Barking and Dagenham in the annual household income required to buy a house. Newham - with a £398,337 average house price - requires the second-lowest annual household income to buy a house at £70,815.

Croydon ranks above Newham in the annual household income required to buy a house. Croydon - with a £402,155 average house price - requires the third-lowest annual household income to buy a house at £71,494.

The spread between the highest household income required to buy a house (in Kensington and Chelsea) and the lowest (in Barking and Dagenham) is £166,169 (around 3.6 times).

Most, if not all, London boroughs require an annual household income that is above the average single income in London to buy a house.

London is not one market. It's a borough-by-borough market. And the annual household income required to buy a house varies borough-by-borough - from £62,980 at the low end (high relative to the average single income in London) to £229,149 at the high end.