Ah, Valentine’s Day: couple’s deals, set menus and two-for-one offers. For London’s singles, it’s another reminder that singledom is more expensive. On one income, bills, rent, groceries — and homes all cost more.
New data from Zoopla shows that, across all London boroughs, the average monthly mortgage payment on a one or two-bedroom home is £1,500 per month, while the median monthly income is £3,837. This means that, on average, single Londoners are spending 39 per cent of their income — before tax — on mortgage payments.
Mortgage payments are more than £1,000 in all London boroughs which, unsurprisingly, is significantly higher than other parts of the UK. In Aberdeen, for example, which is the UK’s most affordable location for single buyers, mortgage payments are just £510.
Zoopla’s affordability calculations are based on the ONS’ earnings data, with an adjustment for earnings growth since April last year.
It assumes that buyers paid a 15 per cent deposit and have a mortgage rate of 4.7 per cent.
London’s most affordable boroughs
Havering is the capital’s most affordable area for single buyers, Zoopla found.
In the east London borough, the average one or two-bedroom property costs £306,480, with single buyers paying £1,100 per month in mortgage payments. This represents 29 per cent of the average buyer’s gross monthly salary of £3,850.
After Havering, singles looking for budget-friendly boroughs should head south. Specifically, to Croydon, Bexley and Sutton, where one and two-bedroom homes cost £313,550, £323,720 and £323,330 respectively.
In these Croydon and Bexley, mortgage repayments represent 30 per cent of the average earnings; in Sutton they are 31 per cent.
London’s most expensive boroughs
Conversely, Kensington and Chelsea is London’s most expensive borough for singles. Not only does the average one or two-bedroom home cost more than anywhere else in London (£925,870), but the mortgage repayments are 73 per cent of the average person’s monthly salary.
The average mortgage repayment, according to Zoopla, is £3,310, while the average person in the borough earns £4,535 per month.
Westminster is the second-priciest borough, followed by Camden and Hammersmith and Fulham. In these three boroughs, mortgage repayments will take up 64, 61 and 53 per cent of monthly earnings respectively.
The average one or two-bedroom home in these areas costs £784,230, £657,200 and £612,990.
“For singletons, buying a first home can feel a little bit like dating and just like dating, first impressions matter,” says Daniel Copley, consumer expert at Zoopla.
“However, it’s important to dig deep into your potential new home as it’s what’s below the surface that determines long-term compatibility. Take your time and do your research before making that ultimate commitment to swipe right on a home.”
Kensington and Chelsea is London’s most expensive borough for singles
Matt Writtle
Of course, buying a home as a singleton is harder because the cost of the property is not split between two people. Last year, research from Mojo Mortgages calculated that a single first-time buyer would need to save for more than nine years to build a deposit big enough to afford a typical London starter home.
This was attributed to the end of the Help to Buy scheme, which allowed first time buyers in London to obtain equity loans of up to 40 per cent of a new build property’s value, as well as lower borrowing power.
But with stamp duty rises in April, the disparity between singles and couples buying in London may widen further – especially if they are first-time buyers.
Currently, stamp duty relief for first-time buyers is applied to purchases of first homes up to the value of £650,000. But from April 2025 onwards, this will drop to £500,000.
According to Zoopla’s data, the average price of a one or two-bed is above £500,000 in eight boroughs: Hackney, Richmond upon Thames, Wandsworth, Islington, Hammersmith and Fulham, Camden and Kensington and Chelsea.
In these areas, therefore, the average first-time buyer will not quality for any stamp duty relief and will pay the same as those who have purchased a home before.
In Hackney, for example, the stamp duty on the average one or two-bedroom home (£519,070) will rise by £11,250. Before April, it would cost £4,703; after the deadline, buyers will pay £15,953.
Likewise, first-time buyers in other boroughs can also expect to see their stamp duty soar. No wonder, then, that buyers are currently pushing to close deals before the changes come into force.