Average London home costs 16 times more than average salary
The average London house price is now 16 times greater than the average annual salary of someone residing in the capital, a study has revealed.
The research, carried out by the National Housing Federation (NHF), claims the average London home costs £526,085, while the average wage is £32,838.
The NHF believes that to be able to afford a mortgage in the capital a household requires an income of £120,248 – almost four times greater than the average salary.
So, according to the study, the average Londoner would need a 266% pay rise to be able to buy a house.
If you are looking to buy a property in the capital, it may be worth speaking to a mortgage adviser first to ensure you get the best deal possible.
However, while these results may appear bleak for those looking to get on the property ladder, the picture is becoming even more miserable for those renting in London.
The same NHF study has revealed that Londoners now spend more than half of their income on rent, paying an average of £1,461 per month.
What's more, the increased number of people renting privately has contributed to a rise in the number of people with a full-time job forced to claim housing benefit so they can cover basic living costs; at 33.7%, London has the highest proportion of working households claiming housing benefit of any UK region.