Bexley and Tower Hamlets are the most affordable London boroughs for homebuyers, with average properties costing 8.5 times local full-time earnings, according to the latest Office for National Statistics (ONS) figures.
In Bexley, the average home cost £415,000 in the 12 months to August, up 1.9% year on year. Average full-time earnings there are £48,966, giving a house-price-to-income ratio of 8.5. In Tower Hamlets, the average property cost £448,000 over the same period, against average earnings of £52,603, also a ratio of 8.5.
Both ratios sit above the national average of 6.7 but are the joint lowest in the capital. Bexley was one of just nine boroughs to see average house prices rise over the year, while Tower Hamlets saw prices fall by 13.3%.
Next most affordable areas
Croydon follows as the next most affordable borough, with average homes costing £397,000 compared with earnings of £46,130, a ratio of 8.6. Newham has a ratio of 8.8, Greenwich 9.3, and Barking and Dagenham, Havering and Bromley all stand at 9.4.
Further down the list, Sutton and Lewisham both record ratios of 9.9, while Redbridge reaches 10.0. Enfield follows at 10.2, Lambeth at 10.2, and Harrow at 10.8. Hillingdon, Southwark, Waltham Forest and Kingston upon Thames complete the mid-range, with ratios between 11.0 and 11.7.
Least affordable boroughs
Kensington and Chelsea remains the least affordable area in the country despite average prices falling 13.8% over the last 12 months. Homes there still cost £1.2 million on average, against local earnings of £58,502, producing a house-price-to-income ratio of 20.6.
Richmond upon Thames has the next highest ratio at 14.5, followed by Camden at 13.8, Westminster at 13.4 and Hammersmith and Fulham at 13.3. Outside London, Elmbridge in Surrey has the highest ratio at 12.7, with average homes costing £736,000 against earnings of £57,962. Mole Valley follows at 12.6, and Trafford is the least affordable in the North of England at 8.6.
Most affordable areas in the UK
Inverclyde in Scotland is the most affordable place to buy a home in the UK, with average prices of £115,000 in the year to August. That equals 3.0 times the average local earnings of £37,819, the lowest ratio in the country. Aberdeen follows at 3.1, with West Dunbartonshire and North Ayrshire both at 3.3 and East Ayrshire at 3.5.
Burnley is the most affordable place to buy in England, where average house prices were £137,000 in the year to August, working out at 3.7 times local earnings of £36,821.
