If you are looking to buy a home in London you may want to think again – house prices are now so expensive you would have to put away £2,300 every month over the next four years for a deposit.
According to a new study by the National Housing Federation, a 20% deposit on an average house in the capital has now soared to around £113,000 – putting home ownership completely beyond reach for the many desperate to step foot on the property ladder.
The average London house price of £563,041 is now double the national average and an unprecedented 16.6 times more than the typical salary.
The report paints an equally bleak picture for private renters, with the average monthly rent now 61% of a typical salary.
But having a job in the capital is not always enough for some, with more and more working people in London turning to benefits to help make ends meet.
Over a third of all housing benefit claimants in London are in work, higher than any other region in England, highlighting the desperate challenge of meeting the costs of skyrocketing rents and house prices.
Home ownership is furthest out of reach in Kensington and Chelsea, where average houses cost close to 35 times local salaries.
Mairead Carroll, the National Housing Federation’s external affairs manager for London, said: “When it comes to the housing crisis, London is in a different world to the rest of England. For too long, not nearly enough affordable homes have been built.
“But housing associations in London are buoyed by increased funding and flexibility from Government and we are now seen as the key players in ramping up the supply of new homes.
“We want to work with the Mayor to end this housing crisis and have clear ambitions to deliver the affordable homes this city so desperately needs.”
Five most expensive areas to buy in London
| Area | Mean house price | Mean salary | How many times house prices are average salaries |
| Kensington and Chelsea | £1,962,710 | £56,462 | 34.8 |
| Westminster | £1,385,014 | £43,472 | 31.9 |
| Camden | £1,092,476 | £40,201 | 27.2 |
| Hammersmith and Fulham | £944,458 | £42,411 | 22.3 |
| City of London | £937,289 | £54,023 | 17.3 |
Five least expensive areas to buy in London
| Area | Mean house price | Mean salary | How many times house prices are average salaries |
| Barking and Dagenham | £254,183 | £25,111 | 10.1 |
| Bexley | £306,396 | £31,096 | 9.9 |
| Havering | £329,615 | £32,874 | 10 |
| Newham | £330,968 | £25,730 | 12.9 |
| Croydon | £351,970 | £29,650 | 11.9 |
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