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London homes ‘earn’ more than a nurse in a year

From Property Talk Live on November 27, 2014

According to new analysis by the National Housing Federation, properties in 20 of London’s 33 boroughs have risen by more than £35,316 in just one year, meaning that thousands of homes have ‘earned’ more than a nurse earning an average full-time salary.

As the chronic shortage of affordable homes in London continues to push prices way out of reach of average earners, the National Housing Federation is urging the government to come up with a long-term plan to end London’s housing crisis within a generation.

With renting from the private sector being the only viable option for thousands of London workers, average rents have shot up by 14%, the equivalent of £182 per month, in two years.

According to a YouGov  poll for the National Housing Federation, 70 per cent of private renters in England aspire to own their own home, meaning thousands of core workers are being locked out of home ownership.

The new analysis by the National Housing Federation revealed that:

•    Homes in almost two thirds of London boroughs (20) also ‘earned’ more than a London secondary school teacher (£37,790)

•    Properties in more than half of London boroughs (17 boroughs) rose by more than the average salary of a police officer (£45,653) or a paramedic (£40,922)

•    In nearly a third of boroughs (10) houses ‘earned’ more than London solicitors who take home £70,840 on average

•    Houses in two of London’s most sought after locations, Kensington & Chelsea and Westminster, shot up by more than Prime Minister David Cameron’s annual salary of £142,000 in just 12 months

David Orr, chief executive of the National Housing Federation, said: “It’s no secret that house prices are way beyond the reach of pay packets of hard working Londoners, but these figures show just how absurd and unfair the housing crisis has become. The housing market is clearly broken when house prices are rising by amounts larger than the entire salary of a nurse, teacher or firefighter. What chance have our core workers got of ever owning a home in London?

“Only Londoners earning over £100,000 can now afford to buy a home here. The fact that even well-paid professionals in the city can’t afford to buy a home and in many cases even struggle to pay their rent, should send alarm bells ringing. And this isn’t a matter of choice in where you live. We need nurses, teachers, firefighters and plumbers in every city. Therefore we need to build homes that they can afford.

“With a bold long term government plan for house building our housing crisis is solvable. We desperately need politicians from all sides to commit to ending the housing crisis within a generation.”

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Source: Property Talk Live