Spending Review (6)

Meeting: 
MQT on 2015-12-16
Session date: 
December 16, 2015
Reference: 
2015/4032
Question By: 
Tom Copley
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

What number and proportion of first-time buyers in London will be able to afford a Starter Home in the capital?

Answer

Answer for Spending Review (6)

Answer for Spending Review (6)

Answered By: 
The Mayor

The cost of Starter Homes - and therefore their affordability to first time buyers - will vary according to local market conditions. Although the cap is £450,000, the Prime Minister has said that he wants to see Starter Homes in London priced at £150,000 or £200,000. The Council of Mortgage Lenders say that the average cost of a home bought by first time buyers in London in the third quarter of this year was £297,389, and so it is likely that many Starter Homes will be affordable for first time buyers in London.