Average London worker needs a 266% pay rise to buy a home

The average Londoner would need a staggering 266% pay rise to be able to afford a home, new figures show.

According to the National Housing Federation’s Home Truths report, the average London home now costs £526,000 – 16 times the average Londoner’s salary of £33,000 a year.

The research found that more than half of all London boroughs require an income greater than £100,000 to buy the average house.

The least affordable borough was Kensington and Chelsea, where despite average earnings of £59,000, homes were still 33 times incomes at £1.94 million.

The most affordable boroughs were Bexley, Barking and Dagenham, Havering, Croydon and Redbridge, but homes were still 11 times above the average income.

The government wants to build one million new homes by the end of the current parliament.

Chief executive of the National Housing Federation, David Orr, 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.

“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.  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.”

The Local Government Association has warned that the government’s plan to help 200,000 first-time buyers on to the property ladder could be out of reach for the majority of families in need of affordable housing in many parts of the country.

The body, which represents local councils across England and Wales, said that analysis by Savills had revealed that starter home prices are out of reach for all people in need of affordable homes in 220 council areas and more than 90% in a further 80 council areas.