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Londoners need £87,000 salary to buy average home

Thursday, 17 November 2011 9:51 AM

The average Londoner would need to more than triple their salary to buy the average price property in the capital, according to a new report from the National Housing Federation (NHF).

But even if they managed to find a job paying £88,000 to buy that £408,000 home it would only be enough to get a 75 per cent mortgage. They would still need to find a deposit of more than £100,000.

The median salary for a Londoner is just £27,000. Even buying a lower quartile home – one in the bottom 25 per cent of prices – would require earnings of £46,000.

Just four London boroughs now have an average house price of under £250,000 and Barking and Dagenham is the only one below £200,000.

But anyone locked out of buying has seen a private sector rent increase of 30 per cent since 2008 and could face a rise of another 20 per cent in the next five years.

Kate Dodsworth, assistant director of the NHF, said: 'London has become unaffordable for ordinary hardworking Londoners who have no realistic chance of buying their own house. The need for new social rented family housing has never been greater."

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