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Prime Minister and Mayor of London Can Afford Over 92% of Homes Across London, Whereas Nurses, Firefighters and Teachers Just 2%
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. https://www.totallymoney.com/mortgages/how-much-salary-buy-london/ 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
Station
Salary Needed
Newbury Park
£17,400
Redbridge
£17,400
Oakwood
£17,600
Upney
£22,300
Croxley
£25,500
Chigwell
£26,400
Hornchurch
£26,400
Wanstead
£27,300
Dagenham East
£27,300
Dagenham Heathway
£28,000
Ten most-expensive stations
Station
Salary
Moorgate
£158,700
Cannon Street
£162,300
Bank
£165,300
Bank
£165,500
Blackfriars
£168,000
St. Paul's
£170,900
Bond Street
£173,400
Mansion House
£176,100
Hyde Park Corner
£230,000
Knightsbridge
£248,600
For more information and a full breakdown of costs, please visit https://www.totallymoney.com/mortgages/how-much-salary-buy-london/.
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About TotallyMoney
With a focus on the one in three UK adults financially under-served by the financial services industry, TotallyMoney is the credit app on a mission to help everyone move their finances forward.
TotallyMoney believes people’s financial data should work for them, and not against them and with more than four million customers, they provide the UK’s only free, live credit score and report.
Its service helps customers understand their financial position and provides personalised recommendations so they can start creating financial momentum. TotallyMoney also works closely with leading lenders, to ensure eligible customers are matched with the right products, underpinned by its robust data, product and tech capabilities.
TotallyMoney is regulated by the Financial Conduct Authority (FCA).