Newspaper article The Evening Standard (London, England)

First-Time Home Costs 'Blighting Lives'

Newspaper article The Evening Standard (London, England)

First-Time Home Costs 'Blighting Lives'

Article excerpt

Byline: Ruth Bloomfield

YOUNG Londoners keen to get on the housing ladder need to earn a minimum of [pounds sterling]31,714 to afford an average starter home in the cheapest postcode in the capital.

In more expensive parts of the city they would need an income of up to [pounds sterling]80,000 to be able to get a modest toehold on the property ladder, according to the National Housing Federation.

Its report, Home Truths, found that to secure a first-time home priced at [pounds sterling]148,000 in Barking and Dagenham, the cheapest borough in the capital, would require a salary of almost [pounds sterling]32,000.

This figure is based on taking on a 75 per cent mortgage, so they would therefore also need to scrape together a deposit of almost [pounds sterling]8,000.

In Westminster, a starter home costs [pounds sterling]380,000 -- meaning would-be buyers need both an [pounds sterling]81,429 salary and savings of around [pounds sterling]95,000, assuming they borrowed at the recommended rate of 3.5 times annual salary.

A first-time buyer with an ambition to live in Greenwich, where starter homes cost around [pounds sterling]190,000, would need a salary of just over [pounds sterling]40,000 and a deposit of more than [pounds sterling]47,000.

To live in Hackney, where average starter homes cost [pounds sterling]225,000, they would need to earn [pounds sterling]48,124 and a deposit of more than [pounds sterling]56,000.

And, in more bad news for beleaguered would-be homeowners, a report by financial advice firm Investorbee.

com has found that an average London worker, saving 10 per cent of their salary, would need to wait 19.6 years to buy an average-priced home.

"High housing costs are blighting lives in London," said Kate Dodsworth, assistant director at the federation.

"The average house price in London is now double that for the country as a whole and prices in London continue to rise, despite falls elsewhere. …

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