A report has claimed that first-time buyers, hoping to move in to London, must earn at least ?93,000 a year in order to stand a chance of affording an average home in the city.
BBC News reported on the research carried out by the National Housing Federation (NHF), which represents around 1,200 housing associations. They say that the average house price in London is at ?362,000.
In order to get the 90 per cent mortgage that would be 3.5 times their salary, a single buyer would require the near six-figure income.
The average wage in London is ?26,000. This is almost ?70,000 less than what is needed by first-time buyers. Adding to their woes the reports claims that overcrowding rates are 2.5 times the national rate.
The NHF?s Belinda Porich said the prices mean owning a home in London will be an impossible dream for many. She commented: ?Even by London standards, these are astronomical prices and many people ? especially young, first-time buyers ? can only dream of owning a home. Providing more affordable housing is part of the solution ? everyone has a right to a home.?
The reports claimed that around 353,000 families have had to be put on the social housing waiting list, with more becoming homeless last year than new homes that were built. The report also said that nearly seven per cent of houses in London are overcrowded.
Ms Porich continued: ?This modern-day scourge of overcrowding affects the black community in particular. Overcrowding and the huge waiting lists show that governments must recognise the urgency of building new affordable housing.?
