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Londoners Need A 283% Pay Rise To Purchase Their First Home

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Londoners Need A 283% Pay Rise To Purchase Their First Home

It's no secret that it's bloody expensive to get into the property market in England's capital - although alternatively, of course, you just buy an island.

As London continues to expand like me at an American all-you-can-eat buffet, the average house price in the majority of boroughs is ballooning to ridiculous heights.

A new report from the National Housing Federation's Home Truths has revealed just how much it will cost you to get keys to a property.

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The average salary in the city is £35,610 ($47,847) and the average house price is a whopping £585,000 ($786,038) - meaning Londoners need to have at least an annual take home of £134,000 ($180,049) to get an 80 percent mortgage.

So that's means you'd need a casual pay raise of 283 percent (and not spend a penny all year) to be able to pay for a home. Yeah - good luck mate.

More than two thirds of London's boroughs require a mortgage of £100,000 ($134,365) or more, which is pretty ridiculous. Like it's just frustrating.

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Barking and Dagenham are the most affordable areas, but you still need £68,448 ($91,959) to get a mortgage. Unsurprisingly, Chelsea and Kensington are the most expensive and you need to be raking in close to half a million pounds a year to be able to get a property.

So it's no surprise that millennials are staying the hell away from the property market.

Paige Hughes is one of those people who would love to be able to own her own home, but realises that now just isn't the right time.

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She told LADbible: "We are encouraged to 'buy' properties, which 99 percent of people don't buy, they get a mortgage, so we all know it's never really owned by us - not for 30 or 40 years at least, anyway.

Credit: PA
Credit: PA

"I do think some people in older generations don't understand why it's difficult and don't understand what it's not a priority for a lot of younger people.

Around 70 percent of people aged between 18-35 admit they don't reckon they'll ever be able to afford a home.

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London also boasts the highest number of people seeking housing benefits, at 36 percent, and has the highest shortfall of available housing, with figures showing there were 177,590 too few homes between 2012 and 2016.

The Evening Standard reports that one of the first real benefits of Brexit is that it could usher in the first fall in property prices since 2009. 30 specialists predict there could be a one percent drop in prices in London, along with a 1.7 percent fall nationally.

While that might not sound like a hell of a lot, a decrease is always better than an increase, let's face it.

Featured Image Credit: PA

Topics: UK News, News, Property, UK, London, Mortgage

Stewart Perrie
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