£84k income to buy 1st home in London

https://www.theguardian.com/money/2019/jun/27/want-to-buy-a-home-in-the-uk-you-will-need-to-earn-54000-on-average

In London, meanwhile, those who have never owned before need an average household income of £84,000 to purchase a property. While this may seem unattainably high for many would-be purchasers, Zoopla said it was the lowest figure for four years and £3,250 less than the amount required in 2016.

Simply not going to end well. Having a whole generation of renters living in a country whose laws are designed for home owners.

84k seems way to high - suspect the reality is around 60k

 

I simply do not know anyone buying their first home in the last few years who did not have significant assistance from family, either due to an inheritance, an advance of an anticipated inheritance, a long term probably never to be repaid loan, a gift, or free accommodation whilst they saved a deposit. 

 

Earning £84k in theory is enough for for a mortgage of around £375k so with some savings that would buy a one bed flat in a pretty reasonable part of town.

What I find far stranger is the people building average houses in vaguely commuter villages with sale prices of £700k plus.  I really don't think there are that many people in my local village with incomes of £150k plus who are going to buy them.

Earning 84k is not enough unless you also happen to have a spare £40k or so for deposit and fees. 

Yes, I suppose Help to Buy is an option for some, but as that artificially inflates house prices seems a stupid "solution" to me. 

Yes but lots of people buy in a couple so that rounds up to £60k.

And by the time your 30 year old professional couple has saved a deposit and got a joint income of £84k a year to enable them to buy a one bed shoe box, they'll probably want to have a child and need a second bedroom. 

£400k is a one bed shoebox in say Balham but head down the road a little way and it'll happily buy you a two bed place.

Colliers Wood Abbs so about two miles as the crow flies or three Tube stops.

But what about non professional people; how are skilled / semi skilled people going to get onto the property ladder.

 

In parts of London like Norwood that many people have never heard of.

yes it is Lady P,  there isn't anywhere in London affordable for  a person on 30/40k

 

Help to Buy and Shared Ownership is a con, and people will find that out when they try to sell later on

I've been monitoring south Norwood as have a potential building plot there and last time I looked £300k would still buy you a house.

When I was in the government and earning close to £50k there wasn't a whole lot within my budget in Norwood.

You are wrong, it will buy you a 1 or maybe 2 bedroom flat,  never a house

Seems it has got a bit more spenny and a 3 bed house is now £400k and a shade over £200k will get a one bed flat.  

PS. I'm talking Norwood Junction and not the posh bit up by Streatham.

Sails, you are going to build another house?

You have been building this current one forever

I bought through shared ownership. I bloody love it, even though it was struggle to get the £75k mortgage on my income

No this is somewhere I'm trying to get planning and sell on.  Thankfully house building is into its final six weeks or so.