Understanding what salary you need to buy a house in London is essential before entering the market. Prices in London continue to rise, and affordability depends heavily on your income, deposit size, and the area you choose. In 2025, buyers must plan carefully to stay within realistic budgets.
Average House Prices and Required Salary in London
London’s average property price sits at around £700,000 in 2025. With most lenders offering mortgages at 4 to 4.5 times annual income, buyers normally need a household salary between £120,000 and £150,000 when using a 10% deposit. This range applies to many mid-priced zones and remains typical for professional households.
However, more affordable boroughs offer easier entry points. Areas like Barking & Dagenham, Bexley, Croydon, and Sutton have homes below the London average. In these boroughs, a combined income between £70,000 and £90,000 may be enough to secure a mortgage with a modest deposit. Because of this, first-time buyers often start in outer zones before moving closer to central areas later.
Prime central locations tell a different story. Boroughs such as Chelsea, Kensington, Mayfair, and Knightsbridge have average prices well over £1.5M. To buy even a small home here, most buyers need an income above £250,000, unless they have a large deposit or significant cash reserves. These markets attract international buyers and high-net-worth households, which keeps prices elevated.
Key Factors That Influence How Much Salary You Need
Several elements affect affordability. First, the size of your deposit can dramatically change your options. A higher deposit lowers both your monthly payments and the salary required by lenders. Second, interest rates remain a major factor. As rates stabilise in 2025, buying power is improving slowly. Third, lenders evaluate credit scores, existing debts, and spending habits when calculating how much you can borrow.
Tips for Buyers Trying to Enter the London Market
First-time buyers have several useful tools. Government schemes and shared ownership options make it easier to purchase with a smaller deposit. Buyers should also compare mortgage products, explore different boroughs, and set clear budgets before viewing properties. Working with a trusted advisor can help you find realistic choices and avoid overstretching financially.
London remains a competitive market, but the right strategy makes homeownership achievable for many buyers in 2025.
