A Londoner could need to earn as much as £87,000 – triple the current average salary in the capital – to buy a property in London, according to a new report by the National Housing Federation.
Home Truths London shows that the average property costs £408,384 and the average income is £27,128.
A salary of £87,511 would be needed to obtain a 75% mortgage, while the borrower would also need to provide a deposit of over £100,000.
NHF assistant director Kate Dodsworth said: “An entire generation has been locked out of a broken market. The battle to house London is being lost every day and the only answer is more affordable homes.”
The report also shows that the average house price ratio to income is 15.1, meaning that Londoners would have to save every penny before tax for 15 years to buy an average-price property.
Even buying a lower value home – in the bottom 25% of prices – would require an average salary of £46,000.
Only four London boroughs have an average house price under £250,000, and only one has average house prices under £200,000.
Dodsworth said: “London has become unaffordable for ordinary hardworking Londoners who have no realistic chance of buying their own house, triggering even greater demand for good social housing or a desperate search for a home in the more expensive private rented sector.”
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