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One in five London homes worth £1m+

One in five London homes worth £1m+

Category: Mortgages

Updated: 17/06/2016
First Published: 17/06/2016

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

We all know how difficult it can be to buy property in London. Prices in the capital are far higher than anywhere else in the country, which makes it increasingly difficult for anyone other than high-flying professionals and the super-rich to be able to afford a home there. If that wasn't enough, new research from estate agent has found that a fifth of London's homes are worth more than £1m. You best get saving that deposit…

Out of reach?

The research found that, although the average price of a home in the capital is £550,000 – and even then you'd be lucky to find a home at that price – one in five properties (20%) are priced above the £1m mark. Perhaps unsurprisingly, many of these homes are concentrated in the high-end boroughs of Westminster and South Kensington and Chelsea, with these regions having the highest proportion of homes above £1m (63% and 62% respectively).

Camden is also becoming a bit of a hotspot with 43% of its properties listed above the £1m mark, followed by Hammersmith and Fulham (36%), Barnet (29%), Wandsworth (28%) and Kingston upon Thames (24%). And that's just for starters – just about all London boroughs have at least a portion of their homes millionaire-worthy, and there are only a few areas where you'd be hard-pressed to find one.

Pockets of affordability

There are, however, still a few boroughs where you may get a bit more bang for your buck, and there's one that doesn't yet have a single property listed above £1m. That borough is Barking and Dagenham, and its surrounding boroughs are also proving to be slightly more affordable: in Newham, for example, just 1% of its properties are priced above £1m, and it's a similar story in Bexley (1%), Waltham Forest (1%), Redbridge (2%), Havering (2%), Greenwich (5%) and Lewisham (3%).

Even so, the average property price in Barking and Dagenham (£253,000) is still well above the UK average, and with prices in the capital continuing to rise, the borough probably won't stay million-pound-free for long. Indeed, founder of Russell Quirk said "it's quite remarkable that there is still an entire borough without even one property at the £1m mark or over", particularly "in a market as inflated as London where stock is scarce and demand is overwhelming".

As such, the overall figures don't exactly paint a picture of affordability. "When people think of London they accept that prices are through the roof," added Russell, "[but] our latest research shines yet another spotlight on how unaffordable London is from a property point of view.

"When you consider that across a city as vast and as populated as London, one in every five properties will cost you a six-digit price tag, it really is disheartening for the aspiring London homeowner."

All in all, it's not looking good from a homebuying perspective, but that doesn't mean it'll be an impossible task. It could mean you have to lower your aspirations from a penthouse in Kensington to a two-up two-down in Barking, but you'll still be on the ladder – and if you are strict with your saving and know the kind of mortgage to look for, you could be on to a winner.

What next?

Read our guide on how to save for a deposit

Find the perfect savings account to build your fund

Check out the top mortgages so you know what you're aiming for

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.