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London is the most expensive place to buy a home in the UK by some distance.
The average house price in the city at the start of 2025 was £556,000 – considerably higher than the UK average of £268,000, according to the Land Registry.
The chart shows how average house prices in London compare with elsewhere in England.
The capital is probably one of the hardest places to get onto the property ladder. Land Registry figures show that the average price paid by a first-time buyer in London was £478,000 in May 2025, compared with £245,000 in England as a whole.
In this guide, we explain the cheapest areas to look for a home in the capital, the first-time buyer schemes that might be able to help you afford to do it, plus we dig into whether a commuter town near London might be worth considering instead.
London is undoubtedly an expensive place to buy a home, but property prices vary significantly depending on which borough you're buying in.
According to figures from the Land Registry, these were the cheapest areas of London in May 2025:
| Local authority | Average property price |
|---|---|
| Barking and Dagenham | £363,323 |
| Bexley | £408,294 |
| Croydon | £411,032 |
| Newham | £414,561 |
| Havering | £444,121 |
At the other end of the scale, the most expensive areas in London were as follows:
| Local authority | Average property price |
|---|---|
| Kensington and Chelsea | £1,183,172 |
| Westminster | £920,645 |
| Camden | £809,827 |
| Richmond upon Thames | £788,485 |
| City of London | £787,104 |
In addition to the costs of buying a house, you'll need to factor in additional expenses such as council tax and the cost of commuting.
Each borough sets its own council tax rates, meaning you'll need to pay significantly more in some areas than others. For example, council tax rates in Wandsworth are less than half of those in Waltham Forest.
You can use our interactive map to find out the average house price in every London borough. The table below the map also shows the council tax rates for 2025/26 and travel fares (last checked in May 2025) for each borough.
Getting a mortgage for a home in London can seem like a daunting task, especially if you're a first-time buyer.
Before you start looking for homes, it's important to work out how much you can borrow, to get an idea of the types of properties you can afford and how much deposit you'll need.
First-time buyers in London put down a hefty average deposit of £125,000 in 2024, according to Halifax. The UK average first-time buyer deposit was £61,000.
As a general rule of thumb, banks will let you borrow around four-and-a-half times your total annual income.
So if you have an income of £40,000 and you're buying on your own, you're likely to be able to borrow up to £180,000. If you're buying with a partner with the same income, this would theoretically double your borrowing power to £360,000.
A mortgage lender will also consider a variety of other factors such as your credit history, personal circumstances, any debts you owe and your spending.
While online mortgage-borrowing calculators will give you a rough idea of budget based on your income, it's worth speaking to an impartial mortgage broker for personalised advice on how much you'll be able to borrow.
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New-build properties
Some mortgage lenders put stricter limits on the maximum amount they'll lend if you're buying a new-build property.
For example, you might be restricted to borrowing 85% of the value of a new-build house, or 75% on a flat, compared to 90% or 95% on an older property.
Studio flats
Due to their compact size and niche demand, studio flats can be a red flag to lenders as they may be trickier to sell when you're ready to move on.
As a result, you could struggle to get a mortgage for a studio apartment, or at least face some extra criteria such as a minimum floor-space requirement.
Short leases
Leases with fewer than 80 years remaining are often more expensive to renew, leading to the value of the property falling.
Lenders can be reluctant to grant a mortgage for properties with short leases, as they can be difficult to sell.
Shared ownership schemes are relatively common in London, as many buyers simply can't afford to purchase properties at full price.
It involves buying a share of between 25% and 75% in a property and paying rent on the remainder.
You can increase your share at a later date, known as 'staircasing', allowing you to build towards full ownership.
These schemes may appear attractive at first, but can be very expensive in the long run. Before buying, do your sums to ensure you'll be able to afford the combined cost of your mortgage payments, rent and any service charge.
London Living Rent is an affordable housing scheme designed to help Londoners on to the property ladder.
Properties are offered at below-market rents, so you can save the leftover cash each month and build up a deposit that will enable you to buy.
Tenancies, which cover how long you can live in the property, will be available for at least three years. During this time, you'll be given the option to buy the property on a shared-ownership basis.
To be eligible for the London Living Rent scheme, you must:
Launched in 2021, the government's First Homes scheme offers first-time buyers and keyworkers a discount when they buy a new-build home in England.
First Homes must be sold at a discount of at least 30% on the market value. To qualify for the scheme in London, you'll need to have a household income of £90,000 or less and be buying a home for £420,000 or less.
Local authorities can set their own criteria on who gets priority during the first three months a property is on sale. This might include applicants needing to have a local address or be key workers.
If you're saving up to buy a home in London, you can use a Lifetime Isa (Lisa) to boost your deposit.
A Lisa offers a 25% bonus on your savings. You can get the bonus on savings of up to £4,000 a year (so a maximum bonus of £1,000 each year).
When you buy your first home, you'll be able to withdraw your savings and the bonus. To qualify, the property you're buying must cost a maximum of £450,000.
This scheme is aimed at buyers with 5% deposits, which is particularly common in London due to its high property prices.
When it launched, 95% mortgages were quite rare as lenders were nervous about lending such a high proportion of the property price in case the home fell into negative equity.
Through this scheme, the government guarantees 95% mortgages, making them less risky to lenders and therefore increasing the likelihood of mortgage applications being approved.
Choosing to live further out from the city can open the door to cheaper property prices.
Make sure you factor the cost of commuting into your budget, to ensure the potential savings you'll make on mortgage payments won't be cancelled out by rail fares. The reliability of trains can also be a drawback, so carefully research areas before settling.
The map and table below contain average property prices for London's closest commuter towns, cities and counties (split by local authority).
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