Embargo 00.01 Thursday 4th October 2018
New research by credit experts TotallyMoney reveal how much Londoners must earn to afford a one-bedroom property across London Underground, Overground, and DLR stations, calling into question whether Prime Minister Theresa May and Mayor of London Sadiq Khan are doing enough to tackle the capital’s housing crisis.
TotallyMoney, the Free Credit Report company, used median prices of one-bedroom properties within one kilometre of London stations, assumed a deposit of 10%, and worked out the monthly repayment on a 25-year mortgage. They then calculated how much tax and national insurance would be paid across all tax bands, and arrived at the gross salary needed to afford a mortgage in each area.
TotallyMoney then redrew the London Underground Map to show how much Londoners must earn to buy a one-bedroom property in that area.
With the research in mind, TotallyMoney revealed that Nurses, Firefighters, and Teachers — who earn £28,000–£31,000 on average — can afford just 2% of the properties surveyed, many of which are some distance away from the centre of London.
On the other hand, the Prime Minister and Mayor of London — who earn approximately £153,000 and £143,000 respectively — have over 92% of the properties surveyed at their disposal.
The figures also show that Sales Assistants would be priced out of buying a London home entirely, with average earnings of just over £16,000.
The research follows recent reports on how Londoners have 4% less disposable income than the national average, largely due to significantly higher housing costs.
Despite promises from both politicians to do more to tackle London’s housing crisis, the research by TotallyMoney suggests getting a foot on the property ladder is still an unattainable dream for many.
TotallyMoney Head of Brand and Marketing Communications Mark Moloney said: “While our map can help prospective buyers find affordable areas in London , what our research shows is that, even if you can save enough for the deposit, your options are even more limited than you might suspect.
“What’s more, the research considers one-bedroom properties only, meaning those with families or those hoping to start a family will have even fewer options available to them.”
Ten least-expensive stations
Ten most-expensive stations
|Hyde Park Corner||£230,000|
For more information and a full breakdown of costs, please visit https://www.totallymoney.com/mortgages/how-much-salary-buy-london/.