Most Londoners would need an absolutely massive pay rise to stand a chance of buying a house in the capital.
The cost of the average home in the city is now £526,000 – well beyond the financial reach of most workers, a new report has revealed.
The average salary in London is £33,000 a year, but in more than half of London boroughs you would need to earn in excess of £100,000 to buy the average house – the equivalent of a 266% pay rise.
Research from the National Housing Federation found the least affordable borough to be Kensington & Chelsea.
Despite average earnings of £59,000, homes are still 33 times incomes at £1.94m on average.
London’s most affordable boroughs according to the Home Truths report are Bexley, Barking & Dagenham, Havering, Croydon and Redbridge – but homes still cost 11 times average incomes.
The high cost of rent in London is another barrier for those looking to get on the property ladder. It now averages £1,461 – around a third of people’s monthly wages.
The report marks the launch of the 100,000 Affordable Homes for London campaign, an offer from London housing associations to help the next mayor tackle the capital’s current 151,000-home deficit.
Housing associations want access to public land in order to contribute to the building of 100,000 affordable homes over the next term.
David Orr, CEO of the National Housing Federation, said: “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.
“Housing associations know how to tackle the crisis and provide quality homes which suit all Londoners.”
“We’re here to say that we know how to help. If the next mayor works with us to tackle the housing crisis at a London level, as we are working with the government to tackle it at a national level, we can go a long way towards solving the housing crisis.”