FTBs hit by London unaffordability

First time buyers (FTBs) are struggling to get onto the property ladder in London as prices have increased well above the average wage.

The London Housing Federation (LHF) warns that the city is facing a "social crisis" and points out that waiting lists for social housing in London have grown by 57 per cent in the last five years.

According to the LHF, the main problem lies in the fact that house prices have increased by 161 per cent since 1997, while the average wage has risen by just 40 per cent.

"Despite fears of a drop in the market, house prices remain beyond the reach of many Londoners and the capital faces nothing short of a social crisis," said Olivia Powis from the LHF.

"House prices in London have reached new highs, leaving thousands of first time buyers unable to get their foot on the ladder. London is now a city of two halves, as the gap between those able and unable to buy their own home grows.

"For London to remain the great world city it is, we need more affordable homes, and we need them soon," she added.

London mayoral candidate Boris Johnson recently attacked Ken Livingstone over his quota system which means that 50 per cent of all new housing in London must be 'affordable'.

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