Research conducted by Nationwide earlier this month has revealed that first-time buyers in London will now be paying nine-times their annual salary on average for a home. This is an all-time high “in terms of multiples of incomes in the capital”. In comparison, the national average is five times annual income. The Office for National Statistics also found, in April last year, prices in the capital had increased by 17.7% in a year – an astonishing increase, causing it to be dubbed “a runaway housing market”.
Many single first-time buyers especially are completely priced out of the market, and these statistics are particularly enlightening as to why. The large majority couldn’t comprehend buying in London without the help of a partner or friend.
According to statistics published by the Guardian, there will be a million fewer affordable houses than there were in 1980, and it is believed by many living in London to be one of the most important issues they face as a city. The London Evening Standard recently reported that “a recent poll of 300 business entrepreneurs found that 40% have thought about moving their operations elsewhere because London’s housing and transport costs are putting off potential talent”. Moving further north has become a possible option in 2015 for many of them.
Architect Peter Barker has commented on the issue, stressing that “a segregated city [lacking in affordable housing] creates a segregated society”. Construction in the UK reached its slowest pace for 17 months in December of last year, and the need is growing every year.
From people converting one rural, dilapidated barn, to those building housing units, Wellesley funds Peer-to-Peer property development and bridging loans for a variety of projects. We specialise in secured, asset-backed lending and monitor our borrower’s project from conception to completion, to ensure our Lenders’ money is invested in the right way.
Take a look at our borrowers’ page to find out what we’ve funded so far, and find out more information about becoming a lender and view our rates here.