In nine out of 32 London boroughs, it is impossible to find a single property for sale for less than the £191,812 UK average
Bexley is the only borough where it is possible to buy a property for less than £100K
There are no homes on the market for less than £250K in Tower Hamlets
The true extent of buyers being priced out of the capital has been revealed as data shows a quarter of London boroughs do not have any properties that cost less than the UK average.
In nine out of 32 London boroughs, it is impossible to find a single home for sale at less than £191,812.
It means first-time buyers with a 5 per cent deposit of £10,000 and an annual salary of £42,000 would not be able to afford a property in these areas – based on a maximum 4.5 income multiple.
The data showed that Bexley is the only borough where it is possible to buy a property for less than £100,000, with a studio flat currently on the market for £94,995. At the other end of the scale, there are no homes on the market for less than £250,000 in Tower Hamlets, according to estate agents HouseSimple.com.
Alex Gosling, chief executive of HouseSimple.com, said: ‘These figures reveal how desperate the plight is for ordinary Londoners on average salaries, hoping to buy their first property. How can they feasibly afford to buy when average property prices in the capital are more than £530,000?’
The research also showed that there are no homes for sale for less than £225,000 in Camden and no homes for less than £220,000 in Richmond upon Thames.
Mr Gosling added: ‘Although this research reveals there are properties for sale below the UK’s average house price, the pickings are extremely slim and you’re getting very little square footage for your money. It’s a studio or nothing in many boroughs.
‘It’s not surprising that more and more people are starting to move out of London for value. Why pay £200,000 for a studio flat when you can buy a house for the same money just an hour commute away.
‘It’s likely in the future we will see less and less people putting their first foot on the property ladder in London.’
It comes as separate research suggested it takes 13 years for a single first-time buyer to save for a deposit.
But that’s as long as they are not planning to buy in London where it now takes 46 years, according to estate agents Hampons International.
However, affordability is expected to improve as wages improve and house prices slow.
Fionnuala Earley, Residential Research Director at Hamptons International said: ‘Affordability is still difficult for first-time buyers, but things did get better in 2015. House price growth slowed in England and Wales while wages increased, making it easier for first-time buyers to save up a deposit to buy their home.
‘Conditions are hardest in the capital where house prices have surged since the crash. It takes almost twice as long for a Londoner to save up a deposit now as in 2008.’