Can I afford to live in London?

Average house prices in London

The average house price in London, according to the Land Registry in June 2026, is £554,000. 

The average house price for properties in London, (at the time of writing, August 2026) is:

• Detached: £1,162,231

• Semi-detached: £721,916

• Terraced: £640,508

• Flat: £431,036

Of course, the price of the property will vary depending on its size and location. As a rule of thumb, the closer you are to Central London, the higher the price of the home. Although London tends to be one of the most expensive cities to live in, the prices can fluctuate across the London boroughs, with many of the more expensive Central London properties driving up the average. 

Cost of living in London

There’s no denying that London can be an expensive place to live. That said, it ranks 24th among the world’s most expensive cities to live in. Expenses will vary considerably depending on the borough, lifestyle, and family size, with the average cost of living in London coming in at £3,346 a month. And 70% of that is spent on property, with the average rent £2,218.  

The good news is that London wages are the highest in the country, with the London Living Wage higher than the UK Living Wage (£12.71) at £14.80 per hour, as of August 2026. 

Londoners and the Lifetime ISA penality

In our 2026 survey, we found that over 36% of respondents who have a Lifetime ISA have bought, or are looking to buy, a home exceeding the £450,000 limit. As a result, they’ve had to cover the resulting LISA penalty and price difference. We found that 18% of aged 25-34 first-time buyers in London who owned a Lifetime ISA had to save for an extra six months or more after accepting the penalty to secure a home over the cap.

By working with a mortgage broker, buyers can identify a clear and personalised path to homeownership.

Remortgage advice in London

If your fixed mortgage is coming to an end and you don’t want to slip onto your lender’s standard variable rate (SVR), a mortgage broker will help you look at your mortgage options. You may also want to remortgage if you’re planning renovations on the property – no matter the reason, our mortgage advisors in London, serving the UK can help. 

You may have to pay an early repayment charge to your existing lender if you remortgage.

First-time buyer mortgage advice in London

For a first-time buyer, having the right mortgage broker in London can make the process easier, taking care of the paperwork and answering questions on one of the biggest (if not the biggest!) financial decisions. 

Moving home mortgage advice in London

It’s one of the most stressful tasks to undertake, so it helps to have the pros on hand. Whether you’re looking for more space, a forever home, downsizing, or relocating, securing your mortgage in London is one of your first tasks. Our professionals help movers up and down the country with finding the right mortgage.

Buy-to-let mortgage advice in London

Whether you're just starting out in property investment or managing a portfolio, finding the right buy-to-let mortgage in London is key. To help find the right buy-to-let mortgage for your needs, we can help.

Helpful links

• City services and information, including schools, parking and healthcare: London Council

• Transport in and around London: Transport for London

• Search for your next house for sale in London

• Speak to a London mortgage broker

Source: 

* Internal data from Mojo Mortgages from 1/1/2025 to 31/12/2025, with 5,528 people we spoke to in London.