Can I afford a house in London on a £150,000 salary?
On a £150,000 salary, the average London home represents just 3.5 times your annual income — well within standard lending criteria. At this level, you have access to a broad range of properties across most of London, and can realistically consider mid-range family homes in desirable areas with a standard deposit.
Based on typical UK tax bands and lending criteria. This is an estimate, not financial advice.
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You are in a strong affordability position compared to the UK average
Your income and disposable income are both above typical levels for UK buyers, giving you solid flexibility on housing, rent, and car choices.
Safe monthly disposable income
After expenses and debt, you have around £10,350 left each month — with a 10% safety buffer built in.
Home you could realistically afford
You could realistically afford a home worth around £713k based on your salary, savings, and financial position.
Most UK buyers with a similar income typically purchase between £627k and £798k
Recommended rent budget
A monthly rent of up to £4,375 would keep your finances healthy, based on the 30–35% income rule.
Car budget
You could comfortably afford a car between £15.0k and £22.5k. Staying closer to the lower figure keeps more budget for savings.
Based on typical UK tax bands and lending criteria. This is an estimate, not financial advice.
What lenders will see
Standard maximum mortgage: Most UK lenders offer between 4× and 4.5× your salary — £600k to £675k on your income.
The gap: The average London home costs £525k. At 3.5× your salary, this sits within standard lending guidelines for most lenders.
Deposit guidance: A 10% deposit should be enough for most standard lenders at this price-to-income ratio.
Local context: London
The average London house price of £525,000 is roughly 85% above the UK national average. However, on a £150,000 salary that gap becomes far more manageable. Standard 4.5× lending supports a mortgage of up to £675,000 — covering the average London home outright, with headroom for a deposit contribution. At this income level, buyers can genuinely access a wide spectrum of London property, from townhouses in South West London to period conversions in neighbourhoods like Brixton, Bethnal Green, and Richmond.
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Compare other UK cities
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