House prices are increasing fifteen times faster than the average wage
Source: Fábio Perez via Flickr
Planning to buy a home? This news story will dampen your spirits
According to research by homelessness charity Shelter, Londoners dreaming about buying their first home will need to earn over £100,000 a year by 2020.
First-time buyers will have to fork out a whopping £138,000 on deposit to buy a home worth £558,000 in four years’ time.
Campbell Robb, Shelter’s chief executive, said: “When house prices are increasing fifteen times faster than the average wage, it’s no wonder Londoners on ordinary incomes are being locked out of a home of their own.
“With the situation only set to get worse, Generation Rent will be forced to resign themselves to a life in expensive, unstable private renting, and wave goodbye to their dreams of a home to put down roots in.
“It doesn’t have to be like this. The next mayor of London has the power to turn our housing crisis around, and with only weeks before Londoners go to the polling booth, the candidates must commit to investing in homes that people on ordinary incomes can actually afford and making renting more secure.”