Wednesday, 24 May 2017

Homeownership out of reach for Londoners

More than half of all Londoners currently renting their home believe they will never become homeowners.

A poll of almost 1,000 Londoners across 33 boroughs for council umbrella group London Councils also highlighted the continuing housing shortage in the capital, with three quarters of respondents saying there is not enough decent accommodation.

Of all renters, 60 per cent said they would never get a foot on the property ladder, with 50 per cent of all private renters holding the same belief.

Four fifths of Londoners disagree that housing will become more affordable over the next two years.

The average house price in London in March 2012 was £343,522, up 0.7 per cent from the previous year. Last week, data from lettings agency network LSL Property Sevices showed London rents had reached a record high, with the average monthly price standing at £1,038.

London Councils’ executive member for housing, mayor Sir Steve Bullock, said: ‘This poll shows that many Londoners who rent their home feel they have been priced out of the housing market for good.

‘London is currently in the throes of a housing crisis and this survey illustrates that there is an acute shortage of affordable accommodation, resulting in rising rents and house prices that are steadily increasing beyond the reach of first time buyers and families who want to rent.

‘More new homes need to be built at the right size, in the right place and at the right price, and the market is still not delivering this.’

Meanwhile, another study published by the Green Party, showed that high private rents are pricing many people out of the market in London.

Young people on the national minimum wage can only afford average rent in a shared flat in four of London’s 33 boroughs, while an adult on minimum wage would be unable to afford a two-bed flat anywhere in the capital.

‘It’s appalling that working people are being priced out of swathes of London by rent rises,’ said Darren Johnson, a Green Party member at the London Assembly. ‘The mayor has failed to recognise that private rented housing is simply too expensive and insecure in London.’

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