If you are a first-time home-buyer, who is planning to buy a house by 2021 in London, then better get prepared to save £2,300 each month from now on. For, the London Home Truths 2016/17 report has noted that the 20 per cent deposit needed to buy an average house has now increased to a whopping £113,000.
It means that new homes are almost out of reach for first-time home-buyers, as the average London house price has reached £563,041 while the average highest salary is £34,000. The house price in London is now double the national average and an unprecedented 16.6 times more than the typical salary, the report observed.
These findings indicate the extent of the housing crisis in London, as more number of people is pushed out of the housing network. Majority of the young working professionals, especially couples, must save a significant proportion of their monthly incomes for deposits to buy homes. It is also a fact that the wages have not grown correspondingly to help the working professionals in acquiring their houses.
In some boroughs of London, such as Chelsea and Kensington, the price of houses has almost reached £2m. Acquiring a house in London has become a challenge because of the demand-supply gap. Strawberry Star, as a stakeholder of the housing sector in London, is coming up with innovative models to lower the cost of buying homes.
House prices have become so expensive in the capital that buyers hoping to save for a typical deposit over the next four years will need to scrape together at least a staggering £2,300 every month, a new report from the National Housing Federation reveals