Homes too expensive for 90% of Londoners
Posted: 24 Mar 2006 11:21:26 GMT
The London Housing Federation (LHF) has this week suggested that buying the average-priced property in the capital requires a salary of almost £82,000.
It follows the release of data from the Rightmove website showing that the average London home now costs more than £300,000, prompting the LHF to express its concerns for the welfare of many prospective homebuyers.
According to estimations, fewer than ten per cent of London's salaried workers actually earn the £82,000 that is needed to purchase a property, with the average figure closer to £26,000.
Even with a couple both bringing home this average salary, a mortgage of £182,000 would be the most they could feasibly afford.
As always, soaring house prices represent a double-edged sword and opinion is predictably split on the data. On the one hand, investors will be celebrating the health of the market following a difficult 2005, while high levels of buyer confidence are clearly desirable.
On the other hand, first-time buyers in particular are finding the prospect of purchasing a house increasingly daunting and are keen for any financial assistance available.
Landlords, meanwhile, are finding that demand for rented accommodation is on the rise as more and more school and university leavers decide to save for many years before paying the deposit for a house of their own.
What remains clear is that while London may offer the most attractive salaries, high house prices add a pressure that should not be underestimated.