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An east London borough has the cheapest house prices in the capital – but homes still cost 10 times the average wage.
Barking and Dagenham has the lowest property prices of any borough in London.
However, according to data published by the Office for National Statistics, house prices are still unaffordable for residents.
In a report published on March 23, the ONS said buying a home would cost the average full-time worker in England 9.1 times their income in 2021.
This was an increase on the year before, when a home would have cost 7.9 times their income.
The growing gap between earnings and property prices hit places like east London hard in the last year.
Around 91 per cent of all local authorities in England and Wales saw house prices grow faster than earnings – making the hugely expensive London property market even less affordable for residents.
Barking and Dagenham in East London is the most affordable borough for buying a home in the city.
According to property website Zoopla, an average home there costs £337,865.
This is significantly lower than the London average home price of £715,201. However, figures published by the ONS show even the least expensive borough is still completely unaffordable for residents.
On average, locals in Barking and Dagenham will have to pay more than 10 times their earnings to be able to afford a house in the borough.
The ONS said in its report: “In 2021, the average house price was between 12 and 24 times the average workplace-based earnings in 23 per cent of local authority areas. These proportions have increased since 2020, when house prices in 15 per cent of local authority areas were between 12 and 24 times the average workplace-based earnings.
“Although housing affordability worsened in 91 per cent of local authorities between 2020 and 2021, longer term trends help identify sustained changes in affordability.”
Kensington and Chelsea was the least affordable borough in London, according to the data, with house prices an astonishing 36.5 times the average income in the West London borough.