A stark new analysis has laid bare the extreme financial pressure facing London homeowners, revealing boroughs where average annual mortgage repayments consume more than 100% of a typical resident's take-home pay.
The Capital's Crushing Mortgage Burden
The study, conducted by cash house buyer Sell House Fast, examined mortgage and salary data across the UK to identify areas with the greatest mortgage burden. The findings, published in January 2026, show a London-dominated picture of housing affordability at crisis point. Remarkably, nine of the top ten places where mortgages take the biggest bite out of salaries are within the capital.
Jack Malnick, Managing Director at Sell House Fast, commented on the strain many are under. "A mortgage should feel like a long-term investment, not a monthly source of stress," he said. "If your repayments are eating up more than 30% of your income, that’s often a sign you’re overextended."
London Boroughs Ranked by Mortgage Pressure
The data presents a sobering ranking of London areas where the gap between earnings and housing costs is most severe.
At the very top is Kensington and Chelsea. Here, the median annual net pay is £41,078, but with an average house price of £1,361,643, the typical annual mortgage repayment soars to £70,595.38. This means residents are spending a staggering 171.9% of their average salary just to cover their mortgage.
In second place is Camden, where the £47,702.58 average annual mortgage repayment consumes 134.1% of the median net pay of £35,580. Westminster follows closely in third, with repayments of £50,628.34 accounting for 126.1% of a typical £40,157 salary.
The list of areas where a full year's salary is insufficient to cover mortgage costs continues:
- Hammersmith and Fulham: Mortgage repayments equal 105.4% of salary.
- Richmond upon Thames: Mortgage repayments equal 96.5% of salary.
- Elmbridge: Mortgage repayments equal 96.4% of salary.
- Islington: Mortgage repayments equal 91.1% of salary.
- Ealing: Mortgage repayments equal 90.5% of salary.
- Haringey: Mortgage repayments equal 90.3% of salary.
- Wandsworth: Mortgage repayments equal 89.9% of salary.
This financial squeeze persists even as the London Living Wage has risen to £14.80 per hour, highlighting how wage growth continues to lag far behind housing cost inflation in the capital.
Expert Advice: Time to Reassess?
With such a significant portion of income diverted to housing, Malnick offers clear guidance for those feeling the pinch. "When essential expenses like food, bills, or savings start slipping, it’s time to reassess," he advises. "Whether that’s by switching to a better deal, adjusting your budget, or exploring a quicker sale if you’re really struggling."
He notes that for some homeowners, the traditional sales market is not a viable option due to time pressures or stress, and points to alternatives like fast cash sales as a potential route to regaining financial control.
"The key thing to remember is that there’s always a way through," Malnick concludes. "Whether you’re looking to re-mortgage or sell up entirely, it’s important to take action early before the situation becomes overwhelming."
The study underscores the profound and growing challenge of homeownership in London, painting a picture of a market where for many, the dream of owning a home comes with an unsustainable financial burden.
