The latest data from property website Zoopla reveals that buyers hoping to purchase in Havering will need to have a household income of £75,200 to afford the average home – priced at £422,700.
This is based on a mortgage capped at 4.5 times annual earnings and a 20 per cent deposit.
According to the Zoopla figures, Havering is the fifth most ‘affordable’ borough in the capital to buy a property in, beaten only by Newham, Bexley, Croydon, and Barking and Dagenham.
The average property price in neighbouring borough Barking and Dagenham is almost £100,000 cheaper than in Havering – costing £335,500 and making it the cheapest place to live in London.
However, the required household salary to afford a home at this price still stands at £59,600 -putting owning a property out of reach for many single-income households.
The UK’s average salary is £37,430, according to the Office for National Statistics, and the income needed for the average property in Havering is more than double this.
While Zoopla emphasised that joint buyers could split the income requirement, the need for a 20 per cent deposit – often tens of thousands of pounds – remains a major hurdle, particularly for renters.
At the top end of the scale, Kensington and Chelsea buyers would need a household salary of £199,300 to afford the average home, now valued at £1.12 million.
