Over £100k a year needed to afford a home in London

Housing Wed, Mar 23, 2016 10:34 AM

Over £100k a year needed to afford a home in London

Only Londoners earning over £100,000 - three times the average London salary - can now afford a typical mortgage in the capital, a new report from the National Housing Federation says.

The report, London: Broken Market, Broken Dreams is a stark look at London’s housing crisis, with soaring housing costs highlighted as its biggest challenge. It reveals that the income needed to afford a typical 80 percent mortgage1 on an average London home was £108,500 – way above the average yearly wage of just £33,000.

It warns that the average house price in the capital has rocketed to over 14 times the average wage, driven by a lack of new homes being built and rising demand.

But, the National Housing Federation also found that the picture isn’t the same across London. For example, in Camden, now one of the most unaffordable boroughs, house prices are over 20 times the average wage, whereas at the other end of the scale house prices are 7.5 times the average wage in Barking and Dagenham.

As well as calling for more affordable homes to be built it highlights other pressing housing issues in the capital, including the need to improve poor quality homes and bring empty homes back in to use.

Dave Smith, external affairs manager for London at the National Housing Federation, said: “The fact that even well-paid professionals in the city can’t afford to buy a home and in many cases even struggle to pay their rent, should send alarm bells ringing.

“From employers struggling to attract new recruits to young people seeing their dreams of owning a home fade away and lower paid workers being priced out of living in the capital altogether, the effects of London’s housing crisis are being felt by millions of people every day.

“To keep London as a thriving city that’s admired around the world, its out of control housing costs must be tackled head on. We urgently need an ambitious, long term plan and for politicians from all sides to commit to ending the housing crisis within a generation.”

Featured News

Specification news
Why fibre cement cladding is a popular choice for the...

When looking at options for the outer shell of a residential project, it’s...

Read More >>

Specification news
EGGER delivers quality and speed of build for Dandara,...

Buckmore Green is the latest development from award-winning housebuilder Dandara, on...

Read More >>

BUILDING PRODUCT LIBRARY - LATEST BROCHURES

CemGold Brochure

CemGold
By IPP

Download Now >>

Mada ProGuard Brochure

Mada ProGuard
By IPP

Download Now >>

Scandinavian Furniture Thoughtfully Made  Brochure

Scandinavian Furnitu...
By BJELIN

Download Now >>

Fire Rated Loft Ladders  Brochure

Fire Rated Loft Ladd...
By Premier Loft Ladders...

Download Now >>

Flooring Collection 2026 Brochure

Flooring Collection...
By Gerflor

Download Now >>

BUILDING PRODUCT DIRECTORY - LATEST PRODUCTS

Magply multi-functional board
Magply multi-functional board

Rainscreen CladdingAs a high performance, multi-functional board Magply features a Magnesium...

Read More >>

Magply recovery and protection boards
Magply recovery and protection boards

Magply recovery and protection boards have been developed to meet the roofing industry needs for a...

Read More >>

Safeshield XT Reflect
Safeshield XT Reflect

Safeshield XT Reflect is an A2-s1, d0 fire rated construction membrane for the use in high risk,...

Read More >>

CONSTRUCTION VIDEOS - LATEST VIDEOS

Fortitude™ Steel Railing Systems: Adjustable Off-the-Shelf Balustrade Guide
Fortitude™ Steel Railing Systems: Adjustable Off-the-Shelf Balustrade Guide

Fortitude Steel Railings and Balustrades are one of the most versatile, off-the-shelf, steel...

Watch Now >>

Pro-Railing® Stainless Steel Handrail Systems: 6 Modern Balustrade & Glass Railing Solutions
Pro-Railing® Stainless Steel Handrail Systems: 6 Modern Balustrade & Glass Railing Solutions

Pro-Railing® – our Stainless Steel Handrail Component System with six stunning ranges to choose...

Watch Now >>

Why Professionals Choose Outdure QwickBuild | Aluminium Deck Frame Case Study
Why Professionals Choose Outdure QwickBuild | Aluminium Deck Frame Case Study

This case study explores a stunning designer terrace featuring the Outdure QwickBuild system,...

Watch Now >>