Londoners would need over 200pc pay rise to buy a home

Young first time buyers moving house

A typical Londoner would need a pay rise of more than 200 per cent to be able to afford a home, new research reveals.

A report from the National Housing Federation shows that the average London home now costs £526,000, 16 times the average Londoner’s salary of £33,000 a year.

More than half of all London boroughs require an income of more than £100,000 to buy the average house, with the least affordable borough ranked as Kensington & Chelsea, where despite average earnings of £59,000, homes are still 33 times incomes at £1.94 million on average.

The most affordable boroughs, on the other hand, are Bexley, Barking & Dagenham, Havering, Croydon and Redbridge – but homes still cost 11 times average incomes.

For those renting accommodation, it is even harder to save up the cash needed to get onto the housing ladder: rent in the capital now averages £1,461, around a third of the people’s pay packets.

The report marks the launch of the 100,000 Affordable Homes for London campaign – an offer from London’s housing associations to help the next mayor tackle the current 151,000-home deficit. Indeed, housing associations built 40,000 homes for rent and sale in London over the last mayoralty, but are “ready to ramp up delivery”.

“A secure and affordable home should be available to everyone. Living in London doesn’t have to mean living in cramped, overpriced, insecure accommodation; the housing crisis is not inevitable,” says Chief Executive of the National Housing Federation David Orr.

“Both Sadiq Khan and Zac Goldsmith have correctly identified housing as one of the biggest challenges facing London.  We’re here to say that we know how to help.”