First-time buyers in London

Meeting: 
MQT on 2015-10-21
Session date: 
October 21, 2015
Reference: 
2015/3167
Question By: 
Stephen Knight
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

Given the average cost of a home for first-time buyers in London is now over £400,000 (and requires a minimum income of £82,400 to afford), how realistic is the Prime Minister's recently stated ambition to transform "generation rent" into "generation buy" in London?

Answer

Answer for First-time buyers in London

Answer for First-time buyers in London

Answered By: 
The Mayor

According to the Council of Mortgage Lenders the median price paid by first time buyers in London is around £317,000 and their median household income is around £61,000. Given that 86% of people would prefer to own their own home rather than rent, it is right to pursue policies aimed at increasing home ownership, including intermediate products which widen accessibility to households on lower incomes.