London house prices: even top earners are priced out of two thirds of the capital - and in one area you'll need a £216K salary to buy a one-bedroom flat

London's staggering house price rises mean that even those on the highest wages can't afford to buy an average house by themselves in some areas. These boroughs are so exclusive that the top 10 per cent of earners in 21 out of 33 boroughs have been priced out....

If you're one of London's top 10 per cent of earners you'd expect to have the pick of the capital's property market.

However, new research reveals the capital's staggering house price rises have put properties out of reach for even individuals on the highest wages in 21 out of 33 boroughs.

The research, produced by estate agent Savills, compares median house prices and earnings for every London borough.

Savills reveals that to buy a typical one-bedroom flat worth £1.2 million in London's most exclusive borough, Kensington and Chelsea, a buyer would need to be earning an eye-watering £216,000 a year. That's almost four times higher than the average annual salary of £60,000 for the area.

Reports that individual top earners are priced out of several more of the capital's prime boroughs will come as no shock to the average Londoner. The minimum annual salary needed to buy a home in sought-after property hotspots such as Westminster, Hammersmith and Fulham, City of London and Camden now starts at £120,000.

However, the top 10 per cent of earners are now also priced out of the boroughs that were still recently considered as 'affordable' hunting grounds for buyers.

This includes Newham, where prices have risen by up to 71 per cent - from £171,000 to £293,000 - over the last 10 years, largely thanks to the huge scale of Olympics regeneration and improvement programmes. Individual buyers now need to earn £50,000 a year, more than double the area's average wage, to buy a starter flat in the borough.

"Home ownership is limited to increasingly affluent households, even where they have two incomes," says head of Savills UK residential research, Lucian Cook.

"Lower value outer-London boroughs have greater remaining capacity for house price growth than higher value parts of the capital, having grown in line with the South-East and East of England rather than London itself over recent years.  

"Walthamstow and Lewisham are expected to show the strongest growth, outperforming the mainstream submarkets of boroughs such as Hammersmith & Fulham and Richmond.”


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