London’s streets are seemingly paved with gold, at least when it comes to property values. A recent study indicates that eight of the UK’s most expensive – and thus unaffordable – places to purchase a home are located in the capital.
Topping the list is the borough of Kensington & Chelsea, known for its wealthy residents including oligarchs, Arab sheiks, industry leaders, and millionaire footballers. The average property price in this borough is a staggering £1,197,249, which is 16.18 times the typical salary.
In contrast, Angus on Scotland’s scenic east coast is at the bottom of Britain’s affordability league. Here, the average property price is a more modest £164,076, just 2.31 times the local average salary. Other London areas featuring in the top 20 unaffordable hotspots include Westminster, Camden, Hammersmith and Fulham, Barnet, Islington, Harrow, and Merton. Outside of London, the Home Counties, particularly Surrey, are also high on the unaffordability league.
These areas, popular with commuters, include Elmbridge, which encompasses Weybridge and Esher, as well as Mole Valley, Epsom and Ewell, Tandridge, and Waveley. The list also includes the Cotswolds, South Hams in Devon, and parts of Hertfordshire, Kent, Hampshire, and Sussex. The squeeze on the cost of living and higher mortgage interest rates have caused the property market to stagnate in recent years.
Since 2020, Wandsworth in London has experienced the most sluggish growth in house prices, with a mere increase of 0.51 percent, while Southwark, also in London, has seen a decrease of 0.74 percent. In stark contrast, Blaenau Gwent and Merthyr Tydfil in Wales have witnessed the highest percentage increases, at 11.03 percent and 11.34 percent respectively.
The study was carried out by property experts at Hopkins Homes, who assessed affordability across 325 areas in England, Scotland, and Wales. They used data on average house prices, changes since 2020, house price-to-couples earnings ratios, and average council tax to calculate an affordability score for each area, taking into account economic conditions.
The report suggests that this comprehensive analysis offers a clear snapshot of the UK’s housing market.
20 Least Affordable Areas to Buy a Home in the UK.
1. Kensington and Chelsea, London – Final Score: 40.
Kensington and Chelsea top the list as the least affordable area to buy a home in the UK, with an average house price of £1,197,249 and a house price-to-earnings ratio of 16.18. Despite a minimal price increase of 0.73 percent since 2020, the high property values and median earnings of £73,996 contribute to its high rank.
2. Westminster, London – Final Score: 53.
The City of Westminster comes in second place, boasting an average house price of £936,715 and a house price-to-earnings ratio of 9.95. House prices have seen a rise of 4.42 percent since 2020, with the median earnings for couples standing at £94,172.
Elmbridge in Surrey takes the third spot, with an average house price of £675,946 and a house price-to-earnings ratio of 8.46. House prices have risen by 4.07 percent since 2020, with couples earning a median annual income of £79,872. Camden in London ranks fourth, with an average house price of £797,248 and a house price-to-earnings ratio of 9.02. House prices have seen a modest increase of 0.7 percent since 2020, with median earnings for couples at £88,400.
Cotswold in Gloucestershire is fifth, with an average house price of £499,606 and a house price-to-earnings ratio of 8.59. House prices have increased by 7.52 percent since 2020, with couples earning a median annual income of £58,146.
Hammersmith and Fulham in London rank sixth, with an average house price of £724,641 and a house price-to-earnings ratio of 8.41. House prices have risen by 3.72 percent since 2020, with couples earning a median annual income of £86,206.
Epsom and Ewell sit in seventh place, boasting an average house price of £531,321 and a house price-to-earnings ratio of 8.1. House prices have seen a rise of 4.61 percent since 2020, with couples earning a median annual income of £65,603.
South Hams in Devon takes the eighth spot, with an average house price of £432,480 and a house price-to-earnings ratio of 6.98. House prices have surged by 8.02 percent since 2020, with couples bringing home a median annual income of £61,922. Mole Valley in Surrey ranks ninth, with an average house price of £565,217 and a house price-to-earnings ratio of 6.19. House prices have climbed by 5.04 percent since 2020, with couples earning a median annual income of £91,291.
Tandridge in Surrey comes in tenth, with an average house price of £516,880 and a house price-to-earnings ratio of 6.84. House prices have risen by 4.69 percent since 2020, with couples earning a median annual income of £75,618. Sevenoaks in Kent is eleventh, with an average house price of £492,056 and a house price-to-earnings ratio of 7.84. House prices have increased by 4.56 percent since 2020, with couples earning a median annual income of £62,785.
Waverley is twelfth on the list, with an average house price of £511,163 and a house price-to-earnings ratio of 6.96. House prices have seen a rise of 4.37 percent since 2020, with couples earning a median annual income of £73,445.
Barnet in London ranks thirteenth, boasting an average house price of £579,029 and a house price-to-earnings ratio of 7.46. Since 2020, house prices have increased by 3.76 percent, with couples bringing home a median annual income of £77,574.
St Albans in Hertfordshire comes in at fourteenth place, with an average house price of £553,806 and a house price-to-earnings ratio of 7.43. House prices have risen by 3.14 percent since 2020, with couples earning a median annual income of £74,568.
Islington in London is fifteenth on the list, with an average house price of £659,560 and a house price-to-earnings ratio of 7.07. House prices have seen a modest increase of 1.64 percent since 2020, with couples earning a median annual income of £93,330.
Winchester in Hampshire ranks sixteenth, with an average house price of £504,924 and a house price-to-earnings ratio of 7.11. House prices have increased by 4.55 percent since 2020, with couples earning a median annual income of £70,990.
Three Rivers ranks seventeenth with an average house price of £557,757 and a house price-to-earnings ratio of 6.22. House prices have increased by 3.61 percent since 2020, with couples earning a median annual income of £89,700.
Harrow in London comes in eighteenth place with an average house price of £502,774 and a house price-to-earnings ratio of 7.32. House prices have seen an increase of 3.86 percent since 2020, with couples earning a median annual income of £68,640.
Merton in London ranks nineteenth with an average house price of £566,968 and a house price-to-earnings ratio of 7.35. House prices have risen by 2.93 percent since 2020, with couples earning a median annual income of £77,126.
Rounding out the top 20 is Rother in East Sussex, with an average house price of £366,846 and a house price-to-earnings ratio of 6.11. House prices have surged by 7.59 percent since 2020, with couples earning a median annual income of £60,070.