Six-Figure Income Needed To Buy In London

Six-Figure Income Needed To Buy In London

Do you have a six-figure income?

If you have, then you mighty just earn enough to buy a property in London. At least, that’s what the latest report from the National Housing Federation is saying. According to the Federation, you would need to earn around £130K per year to make home ownership in London a viable option.

Because of high rents and rises in the cost of living, home ownership for many Londoners is out of reach. By 2021, it has been calculated that your average Londoner would have to stump up around £2.300 a month to buy a standard property. That equates to the net pay of most London residents.

The recent government white paper about housing is trying to address some of the issues of affordability but in the short-term at least, it’s unlikely to have much impact on prices in the capital. Therefore, much reliance is being placed on the private rental sector to fill the gap. The white paper sets out to improve the quality of the rented sector to give people better standards of accommodation at a price they can afford.

The government is trying to push developers to build affordable, good quality homes purely for rental with secure ‘family-friendly’ tenancies of three years or more. If more build-to-rent homes can be built, then the government hopes that investors’ interest will transfer away from buy-to-let, freeing up homes that investors would have previously snapped up and providing more affordable homes for those who want to buy.

It will be interesting to see how this unfolds…