FTBs 'finding it difficult' in London
18th Nov 2011
People hoping to get on the property ladder in London are currently struggling more than those in the majority of other UK regions, according to one expert.
Liam Bailey, head of residential research at Knight Frank, said the problem really is that London has been undersupplied with housing for a long time and demand has grown year-on-year.
His comments follow the publication of a report by the National Housing Federation, which found that the average Londoner would need to triple their salary to £87,000 to buy an average priced property in the capital.
The average property costs £408,384 with the average income at £27,128, but a salary of £87,511 is needed to obtain a 75 per cent mortgage and with the deposit alone topping £100,000.
Mr Bailey explained that it is a "major centre" for people coming into new jobs and immigration, though the housing stock in the capital has not kept pace the change.
"For young people trying to get on the housing ladder, it is very difficult. The reality for most people is that they are unlikely to get on the housing ladder without some form of support – either government support or family support," he added.
He noted that there are "huge pressures" on people to look outside of London, with the reality being that unless people are in jobs which are delivering high salaries, they are struggling to stay in London and are having to look outside of it.
"That is raising prices across the south-east of England as people look for cheaper alternatives to London accommodation and it puts pressure on the infrastructure because people need to get back into London to work," Mr Bailey added.
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