Young Londoners ‘can’t afford to buy in any borough’

The yawning gulf between what typical first-time buyers earn and the price of homes in each London borough is revealed today.
New data compares the average income of singles and couples aged between 18 and 34 across the capital with the cost of an average starter home in their area.
The results make chastening reading. There is not a single borough where an average earner who has managed to scrape together a 10 per cent deposit and acquire a mortgage of three times their annual income — a feat in itself — can expect to buy a property.
The study, by consumer intelligence company Caci, finds Bexley in south-east London is the most affordable area, with average starter homes priced at £171,840.

The average household income of a young buyer in the borough is £41,420. Even assuming they have got a deposit of 10 per cent — just over £4,000 — and a mortgage offer of three times that income, they still face a shortfall of more than £30,000.
Rank          District Cash Gap                  Average Household Income
- Young Singles & Couples
Average Flat/Maisonette Price
1 Bexley -£30,396 £41,420 £171,840
2 Havering -£39,828 £41,865 £183,803
3 Barking and Dagenham -£44,785 £33,119 £160,157
4 Sutton -£51,901 £46,603 £213,011
5 Croydon -£54,552 £42,758 £203,140
6 Bromley -£65,950 £51,039 £243,407
7 Redbridge -£71,436 £44,725 £228,458
8 Waltham Forest -£73,206 £38,320 £209,073
9 Enfield -£76,356 £39,803 £217,518
10 Hillingdon -£77,666 £42,913 £229,339

In the most expensive borough, Kensington and Chelsea, the average price of a flat or maisonette stands at £964,565 while the average income of a young resident is £56,287. This means that buyers who aspire to live in the royal borough face a cash gap of an astonishing £699,246.
The news is little better in the commuter zones. Many areas — from Oxford to Brighton, and from Guildford in Surrey to Windsor and Maidenhead — are just as unaffordable to first-timers as London.
There are, however, four affordable commuter zones named in the study: Milton Keynes, Swale in Kent, Fareham in Hampshire and Medway. In all of these areas an average wage will buy an average starter home.
Of these Rochester, in Medway, is the stand out. A new station, offering more reliable and faster London trains, is promised next year. Work has just started on a multibillion-pound housing scheme known as Rochester Riverside, which will provide 2,000 new homes. And the area benefits from Kent’s excellent grammar school system.


Follow us on Twitter @HomesProperty and Facebook