Croydon is one of the most affordable places to buy a home in London.
Bargain sales: Croydon properties compare well to the rest of London on affordability according to Zoopla
Research conducted by online property portal Zoopla compared average incomes and house prices by borough, and found that in Croydon, homes have been selling for 5.26 times the average household income.
Seven of London’s most affordable boroughs are south of the river, with Tower Hamlets in east London ranked top with the median-priced home of £455,200 being 4.91 times that area’s average household income.
Greenwich and Croydon were ranked joint second.
Greenwich’s median property price is £451,900. In Croydon, it is £430,100.
While that is less than Tower Hamlets, earnings in this borough average out as less than in Tower Hamlets.
Southwark, Lambeth, Lewisham, Bexley and Bromley were all in the top 10 of affordable boroughs.
The Zoopla index: how the online portal ranked London’s most affordable boroughs
Kensington and Chelsea is seen as the least affordable borough to buy a home, where the median home value is 9.5 times household earnings.
Overall, London is the country’s least affordable region, with homes across the capital valued at 6.11 times the average household earnings.
The household income averages were based on the earnings of two full-time workers. Couples Typically, across the whole country, couples spend 4.3 times their combined salary to buy the average home.
Britain’s most affordable town has been found to be Shildon in County Durham (where former Croydon councillor Simon Hall has moved and been co-opted on to the council). There, homes cost 1.15 times the annual household earnings.
The affordability index was brought into sharp focus last week when the Bank of England increased interest rates to 4%, meaning homeowners face increases in their mortgage payments, some of as much as £600 over the course of a year.
“Affordability varies widely across the country, with many towns in northern England and Scotland offering much better value relative to local household earnings,” said Zoopla’s Richard Donnell.
“However, lower house prices don’t always mean it’s easier to buy, as access to employment, deposits and mortgage costs remain important considerations.
“Buyers have more homes to choose from than a year ago, and there is greater scope to negotiate on price, particularly in southern England.
“Anyone considering a move should take a fresh look at what they can afford and what’s available locally. Expanding a search to neighbouring towns could make a meaningful difference to their buying options.”
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