You'd have to live under a rock not to know that house prices in London are incredibly expensive... and, for most people, a rock might be all they could afford in the capital.
A recent study by the
National Housing Federation has
found that a 20% deposit on an average London property has increased to
£113,000,
putting stepping on the property ladder in the capital out of reach for many. And
renting isn't cheap either, with an average monthly rent over 60% of a typical
salary. Factor in living expenses and there is little left over to start saving
towards a deposit. It's no wonder perhaps, that fewer people than before expect
to own their own home in the future.
Of course, some areas in London are more affordable than others - the average price in Barking & Dagenham, for instance, is around ten times the average wage, whereas properties in Kensington & Chelsea top the list of the least affordable, with prices being nearly 35 times the average local wage. Other expensive areas are Westminster, Camden, Hammersmith and Fulham and the City of London, and cheaper areas are Bexley, Havering, Newham and Croydon.
So how are people managing? More and more people in London are turning to the welfare system to make ends meet, with around one third of all housing benefit claimants being working people. This proportion is higher than any other area in England, which highlights the difficulties in the capital.
The housing crisis is experienced more acutely in London than any other area, and action is needed to address the issue of affordable housing. Housing associations have been the recipients of more funding and flexibility from the Government, and the National Housing Federation is keen to work closely with the mayor to deliver affordable homes in the capital.