Can you afford to buy a home in London in 2026?
It depends on the borough. First-time buyer prices in London range from £332,036 in Croydon to £1,022,820 in Kensington and Chelsea — a 3x difference within the same city, according to HM Land Registry data (January 2026).
This borough-by-borough breakdown uses real prices and local earnings data to show where in London first-time buyers can realistically afford to buy.
How do all London boroughs rank by affordability?
We rank each borough by its price-to-earnings ratio — the FTB average price divided by the local median salary (ONS ASHE 2024). A lower ratio means more affordable. The UK average is around 7–8x; anything above 10x is considered severely unaffordable.
| Rank | Borough | FTB price | Median earnings | Ratio | 10% deposit | Income needed |
|---|---|---|---|---|---|---|
| 1 | Croydon | £332,036 | £38,033 | 8.7x | £33,204 | £66,407 |
| 2 | Bexley | £360,908 | £38,478 | 9.4x | £36,091 | £72,182 |
| 3 | Bromley | £405,902 | £40,514 | 10x | £40,590 | £81,180 |
| 4 | Havering | £388,362 | £38,905 | 10x | £38,836 | £77,672 |
| 5 | Sutton | £370,779 | £37,049 | 10x | £37,078 | £74,156 |
| 6 | Greenwich | £423,365 | £39,790 | 10.6x | £42,337 | £84,673 |
| 7 | Tower Hamlets | £444,400 | £40,204 | 11.1x | £44,440 | £88,880 |
| 8 | Lambeth | £480,949 | £42,961 | 11.2x | £48,095 | £96,190 |
| 9 | Enfield | £400,385 | £35,383 | 11.3x | £40,039 | £80,077 |
| 10 | Barking and Dagenham | £345,290 | £29,790 | 11.6x | £34,529 | £69,058 |
| 11 | Hillingdon | £406,614 | £34,972 | 11.6x | £40,661 | £81,323 |
| 12 | Lewisham | £441,025 | £37,611 | 11.7x | £44,103 | £88,205 |
| 13 | Newham | £386,077 | £32,551 | 11.9x | £38,608 | £77,215 |
| 14 | Kingston upon Thames | £463,901 | £38,491 | 12.1x | £46,390 | £92,780 |
| 15 | Redbridge | £446,363 | £37,027 | 12.1x | £44,636 | £89,273 |
| 16 | Waltham Forest | £470,458 | £38,093 | 12.4x | £47,046 | £94,092 |
| 17 | Barnet | £461,425 | £36,355 | 12.7x | £46,143 | £92,285 |
| 18 | Wandsworth | £577,041 | £44,854 | 12.9x | £57,704 | £115,408 |
| 19 | Harrow | £438,248 | £33,499 | 13.1x | £43,825 | £87,650 |
| 20 | Southwark | £515,735 | £39,396 | 13.1x | £51,574 | £103,147 |
| 21 | Richmond upon Thames | £633,057 | £47,657 | 13.3x | £63,306 | £126,611 |
| 22 | Hounslow | £448,220 | £33,507 | 13.4x | £44,822 | £89,644 |
| 23 | Ealing | £486,769 | £36,114 | 13.5x | £48,677 | £97,354 |
| 24 | Merton | £510,144 | £37,877 | 13.5x | £51,014 | £102,029 |
| 25 | Haringey | £539,378 | £38,385 | 14.1x | £53,938 | £107,876 |
| 26 | Hammersmith and Fulham | £624,269 | £44,025 | 14.2x | £62,427 | £124,854 |
| 27 | Islington | £618,753 | £43,331 | 14.3x | £61,875 | £123,751 |
| 28 | Brent | £479,121 | £33,388 | 14.4x | £47,912 | £95,824 |
| 29 | Hackney | £564,641 | £39,211 | 14.4x | £56,464 | £112,928 |
| 30 | Camden | £695,654 | £41,410 | 16.8x | £69,565 | £139,131 |
| 31 | Westminster | £817,540 | £45,889 | 17.8x | £81,754 | £163,508 |
| 32 | Kensington and Chelsea | £1,022,820 | £44,338 | 23.1x | £102,282 | £204,564 |
Which London boroughs are most affordable for first-time buyers?
The 10 most affordable boroughs by price-to-earnings ratio are all in Outer London, primarily in the east and south-east. Croydon tops the list with a ratio of just 8.7x — still high by national standards but the most accessible London has to offer.
- Croydon — FTB price £332,036, deposit £33,204, income needed £66,407 (8.7x ratio)
- Bexley — FTB price £360,908, deposit £36,091, income needed £72,182 (9.4x ratio)
- Bromley — FTB price £405,902, deposit £40,590, income needed £81,180 (10x ratio)
- Havering — FTB price £388,362, deposit £38,836, income needed £77,672 (10x ratio)
- Sutton — FTB price £370,779, deposit £37,078, income needed £74,156 (10x ratio)
- Greenwich — FTB price £423,365, deposit £42,337, income needed £84,673 (10.6x ratio)
- Tower Hamlets — FTB price £444,400, deposit £44,440, income needed £88,880 (11.1x ratio)
- Lambeth — FTB price £480,949, deposit £48,095, income needed £96,190 (11.2x ratio)
- Enfield — FTB price £400,385, deposit £40,039, income needed £80,077 (11.3x ratio)
- Barking and Dagenham — FTB price £345,290, deposit £34,529, income needed £69,058 (11.6x ratio)
Tip
Even in London's most affordable boroughs, you will likely need a combined household income to qualify. A dual-income application at the London median of £38,293 each gives a combined income of £76,586 and a maximum mortgage of £344,637. Use our affordability calculator to model your situation.
Which London boroughs are most expensive for first-time buyers?
Central and west London boroughs have eye-watering price-to-earnings ratios. In Kensington and Chelsea, a first-time buyer would need a household income of £204,564 and a deposit of £102,282 — putting home ownership out of reach for all but the highest earners.
- Kensington and Chelsea — FTB price £1,022,820, deposit £102,282, income needed £204,564 (23.1x ratio)
- Westminster — FTB price £817,540, deposit £81,754, income needed £163,508 (17.8x ratio)
- Camden — FTB price £695,654, deposit £69,565, income needed £139,131 (16.8x ratio)
- Hackney — FTB price £564,641, deposit £56,464, income needed £112,928 (14.4x ratio)
- Brent — FTB price £479,121, deposit £47,912, income needed £95,824 (14.4x ratio)
- Islington — FTB price £618,753, deposit £61,875, income needed £123,751 (14.3x ratio)
- Hammersmith and Fulham — FTB price £624,269, deposit £62,427, income needed £124,854 (14.2x ratio)
- Haringey — FTB price £539,378, deposit £53,938, income needed £107,876 (14.1x ratio)
- Merton — FTB price £510,144, deposit £51,014, income needed £102,029 (13.5x ratio)
- Ealing — FTB price £486,769, deposit £48,677, income needed £97,354 (13.5x ratio)
How much deposit do you need for each London borough?
Here is what you would need to save at 5%, 10%, and 15% deposit levels across the most and least affordable boroughs:
| Borough | FTB price | 5% deposit | 10% deposit | 15% deposit |
|---|---|---|---|---|
| Croydon | £332,036 | £16,602 | £33,204 | £49,805 |
| Bexley | £360,908 | £18,045 | £36,091 | £54,136 |
| Bromley | £405,902 | £20,295 | £40,590 | £60,885 |
| Havering | £388,362 | £19,418 | £38,836 | £58,254 |
| Sutton | £370,779 | £18,539 | £37,078 | £55,617 |
| Kensington and Chelsea | £1,022,820 | £51,141 | £102,282 | £153,423 |
| Westminster | £817,540 | £40,877 | £81,754 | £122,631 |
| Camden | £695,654 | £34,783 | £69,565 | £104,348 |
| Hackney | £564,641 | £28,232 | £56,464 | £84,696 |
| Brent | £479,121 | £23,956 | £47,912 | £71,868 |
Watch out
London's stamp duty threshold for first-time buyers is £425,000 (properties up to £625,000). Many outer London boroughs fall within this relief band, but inner London boroughs often exceed it — meaning additional upfront costs of £5,000–£20,000+. Use our stamp duty calculator to check.
What type of property can first-time buyers afford in London?
For most first-time buyers in London, flats are the realistic entry point. Here is how property type prices compare in the most affordable boroughs:
| Borough | Flat | Terraced | Semi-detached | Detached |
|---|---|---|---|---|
| Croydon | £258,827 | £402,474 | £539,252 | £839,744 |
| Bexley | £247,313 | £414,900 | £529,904 | £730,152 |
| Bromley | £315,358 | £499,447 | £672,408 | £1,091,743 |
| Havering | £254,291 | £434,528 | £537,528 | £832,085 |
| Sutton | £284,558 | £462,483 | £650,660 | £1,026,580 |
| Greenwich | £366,435 | £559,710 | £726,598 | £1,024,384 |
| Tower Hamlets | £446,619 | £706,743 | £692,756 | £936,059 |
| Lambeth | £448,725 | £805,187 | £1,030,064 | £1,165,663 |
In most boroughs, flats cost 40–60% less than houses. A flat in Croydon at £258,827 is more accessible than a terraced house in the same borough at £402,474.
How can first-time buyers improve their chances of buying in London?
London is the UK's toughest market for first-time buyers, but there are practical strategies to improve your chances:
- Buy with a partner or friend: Joint applications combine incomes, potentially doubling your borrowing capacity.
- Look at outer boroughs: Croydon, Bexley, and Bromley offer the best value within the M25.
- Consider Shared Ownership: Buy a 25–75% share, typically requiring just 5% deposit on your share. See government schemes for eligibility.
- Use a Lifetime ISA: Get a 25% government bonus (up to £1,000/year) on savings towards your first home.
- Speak to a broker: Some lenders offer enhanced multiples (5–5.5x income) for London buyers or specific professions. A mortgage broker can access these deals.
What salary do I need to buy a flat in London?
It depends on the borough. The cheapest London flats are in Barking and Dagenham at around £242,137. With a 10% deposit and 4.5x multiplier, you would need an income of roughly £48,427. For a flat in a central borough like Camden (£657,472), you would need around £131,494.
Is it cheaper to rent or buy in London in 2026?
In most outer London boroughs, monthly mortgage payments on a 2-year fix are now comparable to rents — meaning buying can be cost-neutral or cheaper month-to-month, while building equity. The challenge is saving the upfront deposit. Use our mortgage calculator to compare your potential payments.
Do first-time buyers pay stamp duty in London?
First-time buyers pay no stamp duty on properties up to £425,000 and a reduced rate on properties up to £625,000. In London, this means many outer borough purchases are stamp-duty-free, but inner London properties often exceed the threshold.
Which London borough has the cheapest houses?
Based on January 2026 data, Croydon has the lowest first-time buyer average at £332,036. For the cheapest flats specifically, Barking and Dagenham at £242,137 is the most affordable.
Can I buy in London on a single salary?
It is very difficult. On the London median salary of £38,293, the maximum mortgage is £172,319 — which with a 10% deposit covers a property up to about £191,465. Only shared ownership or the very cheapest boroughs are within reach for a single earner at median income.