00:00Have London house prices really become more affordable?
00:03Even though London is still Britain's least affordable region,
00:06there could be a bit of good news for buyers.
00:08Areas like Tower Hamlets, Croydon and Barking and Dagenham
00:12are now among the most affordable in the capital,
00:14as wages begin to catch up with house prices.
00:17So, is this a sign of hope for young Londoners wanting to get on the property ladder?
00:21While the stats say yes, in reality we have a long way to go.
00:25The average home in the capital still costs 13.9 times the typical annual salary.
00:30Lenders will only lend multiples of four or five times an income.
00:34However, boroughs like Kensington and Chelsea have an average house price of 1.18 million,
00:39which is 25.2 times the local salary.
00:41A first-time buyer in London would need a deposit of ÂŁ125,000, according to Halifax's estimates,
00:48and on top of this they'll need to budget stamp duty, legal fees and moving costs.
00:52So maybe let's not get too excited just yet.
Comments