London Daily

Focus on the big picture.
Saturday, May 31, 2025

London no longer one of the least affordable places to buy a home

London no longer one of the least affordable places to buy a home

London’s reputation as the toughest place in Britain to buy a home is on the wane after a year of strong price growth in the provinces and stagnant growth across large swathes of the capital.

According to a study by Halifax, published today, the most unaffordable option is the affluent Hampshire cathedral city of Winchester where a typical home costs 14 times the city’s average income of £45,000.

London has slipped outside the top five of Halifax’s league table of unaffordable cities around the country for the first time in six years, beaten out by Oxford, Truro, Bath, and Chichester.

But, with average house prices up five per cent in the year to June to hit £564,695, and earnings up four per cent, the capital’s price-to-wages ratio is still a punishing 11.

London has dropped down the unaffordability league table thanks to the pandemic-inspired shift of buyer priorities.

Freed from daily commutes many people who might otherwise have remained in the capital have rushed to buy homes in coastal and country hotspots, as well as appealing small cities, causing mini housing booms across the south east, east, and south west of England.

Analysis of sales during the first five months of 2021 by Search Acumen found that just over half of the 4,881 homes which sold for £1m or more in England and Wales were beyond London – the first time in more than a decade that the capital has not had a majority share of seven-figure sales.

What will happen to London house prices?


Central London, meanwhile, has been hit by the almost complete absence of overseas buyers since March 2020 and the increased appeal of suburban locations with plentiful green space and cheaper real estate.

Aneisha Beveridge, head of research at Hamptons International, said she expected regional cities to continue outperforming the capital in terms of house price growth.

“We have not seen the proportion of people leaving London fall over the last couple of months, despite the fact that … [lockdown] … restrictions have ended,” she said.

“We do think the numbers leaving will fall a little next year, but numbers will still be higher than they were before the pandemic.

“Working habits definitely seem to be changing, and people will have a bit more flexibility about where they work and live.”

As travel and other restrictions ease, however, commentators do expect prices in London to start to escalate in the slightly longer term.

Savills’ latest prime house price forecasts predicts that prices in prime central London will increase by 21 per cent, while prices in the suburbs will shoot up 26 per cent.

At the other end of the scale, Halifax found that Derry is the most affordable city, with average property prices some 4.7 times the average wage.

Predictably most of England’s most affordable options are northern, led by Carlisle and Bradford. Across the UK the average home costs some eight times average earnings.

Back in 2011 an average UK property cost a relatively modest 5.6 times the national average income.

Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×