Newspaper article The Evening Standard (London, England)

PS80,000 Earners Targeted on Tax 'Can't Afford Average House in Much of City'

Newspaper article The Evening Standard (London, England)

PS80,000 Earners Targeted on Tax 'Can't Afford Average House in Much of City'

Article excerpt

Byline: Jonathan Prynn Consumer Business Editor

A LONDONER earning PS80,000 Labour's threshold for higher tax rates is already priced out of buying the average-priced home on many of the city's streets, according to analysis.

Shadow chancellor John McDonnell said this weekend that income tax for those on PS80,000 or more would rise to pay for better public services if Jeremy Corbyn became prime minister. But experts said even high earners in this bracket faced a struggle to get on London's property ladder. Armed with a 20 per cent deposit of PS80,000 and a mortgage of four times salary the maximum most lenders will advance the purchaser would be able to raise PS400,000 if buying on their own.

According to analysis by agents Savills, that is enough to pay for the average-priced home in only six London boroughs: Barking & Dagenham, Bexley, Havering, Newham, Croydon and Sutton. Across the capital's 631 local council wards where there is an active property market, only 200, or 32 per cent, have average prices below the PS400,000 mark. …

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