The average first time buyer now pays £148,000 more for a property in the capital than they did when Boris Johnson came to power, according to new analysis from my colleague Tom Copley. The astronomic rise means Londoners seeking to get onto the property ladder now pay 54% more than they would have in May 2008. The figures illustrate that under Boris, owning a property has become a distant dream for many of London’s renters.
The analysis of ONS data showed that in May 2008 the average first time buyer paid £271,000 for their property. By December 2015, the latest data available, the average first time buyer in London paid £419,000, 54% more than when the Mayor first came to power.
In real terms, taking inflation into account, prices for first time buyers have still risen £90,000 above RPI, leaving Londoners paying 27% higher in real terms than in May 2008. The new analysis will be particularly worrying to the 50.5% of Londoners who now rent and may be looking to get onto the property ladder.
Despite pledging to tackle the housing crisis, the Mayor has not once managed to hit his London Plan house building target, now 42,000 homes a year. Over his eight years in City Hall the number of housing completions has never topped the 20,450 built in his first year, with only 18,710 built each year on average over his two mayoral terms.
|Average first time buyer property price|
|Average price increase May 2008 – Dec 2015||148,000|
|Percentage price increase May 2008 – Dec 2015||54%|