Affordability decreases in London

Posted: 01 Aug 2007 11:20:33 GMT

London is proving to be too expensive for the majority of first-time buyers (FTBs).

London is proving to be too expensive for the majority of first-time buyers (FTBs).

Property specialist Zoomf has published research that shows that scale of the problem for FTBs living in the capital.

According to the study, 70 per cent of people aged between 18 and 34 are unable to afford a home in London.

This figure soars to 84 per cent when looking at those aged 18-24 and even the wealthier age group of 25-34 is struggling, with 54 per cent unable to buy.

"The market in London remains extremely competitive and with house prices showing no sign of relenting on their upward surge, an increasing amount of young people are unable to afford to buy their first home," said Mike Carter, co-founder of Zoomf.

"A year of interest rate rises is also doing nothing to alleviate the problem."

Although the figures are bad news for FTBs, home sellers with a property in London will be pleased.

It has been revealed that the average one bedroom flat in London now costs £265,333.

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