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What could a family buy in London on the average salary?

It has become virtually impossible to find a family home to buy in London on an average salary, new research reveals.

House prices in the capital remain far out of reach for a family with a single average earner, despite the market being cooled by more people seeking to move out of the capital during the pandemic.

The median London salary at £39,719 is higher than the overall UK median salary at £31,285, according to the ONS, but for someone borrowing a mortgage of 4.5 times their earnings and buying with a 10 per cent deposit, this only stretches to a property costing around £200,000.

To highlight how difficult it would be for a single average earner family to buy a home, we looked at potential three-bedroom properties in London and found just five for sale on Zoopla costing £200,000 or less. And for many buyers, even this handful may not be suitable.

Most of the properties in our list were shared ownership, such as this townhouse in South East London's Thamesmead (scroll down for more details)

Most of the properties in our list were shared ownership, such as this townhouse in South East London’s Thamesmead (scroll down for more details)

All five listings have a feature that marks them out from the traditional definition of a home.

The majority are shared ownership, which means that you can only buy a proportion of the property – and that means their actual outright cost would be more than £200,000.

And finally, one of the three-bedroom properties in our list is not even on dry land, as it is a houseboat. 

Daniel Copley, of Zoopla, said: ‘Family homes in London on sale for under £200,000 are few and far between.’ 

In fact, the average price of a home in London is £507,230, up 4.2 per cent or £20,668 in a year, according to Nationwide. 

This is beyond even a London household with two median full-time salaries totalling £79,438, on which a 4.5 times earnings mortgage would stretch to £357,471. Added to a 10 per cent deposit – which is £50,700, based on the average London house price – that equates to just over £408,000.

The average London price compares to typical values standing at £253,113 for the whole of the UK, which is up 10.1 per cent or £23,294 in a year. 

North London estate agent Jeremy Leaf said: ‘Last year, average property prices outstripped average earnings and stayed there, which made it even more difficult to buy houses or flats with outside space as these were top of the wish list for those looking to move.

‘For first-time buyers, it was even more difficult to take that initial step onto the ladder without help from the Bank of Mum and Dad. The net result is evidenced in the Zoopla figures showing virtually no houses available in many parts of London, following multiple offers on anything reasonably decent at a fair price.

‘But all is not necessarily lost as the number of market appraisals is on the rise, as is often the case at this time of year. Providing owners can go back to work and children return to school, many of those should become listings and improve the balance between supply and demand, as well as help keep property prices in check.’

The five London homes for sale for less than £200k…

1. Three-bed house, South East London, £150k

This image has been computer generated, as this development of flats and townhouses in South East London's Thamesmead has yet to be finished

This image has been computer generated, as this development of flats and townhouses in South East London’s Thamesmead has yet to be finished

The three-bedroom houses are available to buy under shared ownership, and allow buyers to purchase between 30 per cent and 75 per cent of the property

The three-bedroom houses are available to buy under shared ownership, and allow buyers to purchase between 30 per cent and 75 per cent of the property

This three-bedroom house in South East London’s Thamesmead is for sale for £150,000.

It is part of a new development that has yet to be completed. The properties are shared ownership and allow buyers to purchase between 30 per cent and 75 per cent of the property.Buyers pay rent on the remaining unpurchased share.

As well as three bedrooms, the property has private parking and good access to public transport. It is half a mile from Abbey Wood train station, where Crossrail is scheduled to open this year, making Canary Wharf only 11 minutes away. It is available via Peabody.

2. Three-bed house, West London, £125k

This three-bedroom house in West London's Hayes has a full market value of £500,000, with a 25 per cent share being sold for £125,000

This three-bedroom house in West London’s Hayes has a full market value of £500,000, with a 25 per cent share being sold for £125,000

Rent is payable on the remaining share of £943.10 a month, and there is also a monthly service charge of £17.02

Rent is payable on the remaining share of £943.10 a month, and there is also a monthly service charge of £17.02

This three-bedroom house in West London’s Hayes has a full market value of £500,000.

A 25 per cent share of £125,000 is available to buy, with rent payable on the remaining share of £943.10 a month. There is also a monthly service charge of £17.02.

It is available via Catalyst and the listing states that ‘priority will be given to those who live or work in the Hillingdon local authority area’. 

3. Three-bed house, South East London, (price on application)

These three-bedroom townhouses in South East London's Sydenham have not yet been completed, but are expected by so within the coming months

These three-bedroom townhouses in South East London’s Sydenham have not yet been completed, but are expected by so within the coming months

These properties are shared ownership, meaning you will only be able to buy a share, with rent payable on the remaining amount

These properties are shared ownership, meaning you will only be able to buy a share, with rent payable on the remaining amount

These three-bedroom townhouses in South East London’s leafy Sydenham have not yet been completed, but are expected by so within the coming months.

Their prices have also not been revealed and are only available on enquiry from serious buyers. However, they were included in our search on Zoopla for three-bed homes in London costing less than £200,000.

That price, however, is not the full market value as these properties are shared ownership, meaning you will only be able to buy a share, with rent payable on the remaining amount. The houses are available via Peabody.

4. Three-bed house, West London, £103,200

This three-bedroom house in West London's Feltham has a full market value of £344k

A 30 per cent share is available to buy for £103,200

This three-bedroom house in West London’s Feltham has a full market value of £344,000, with a 30 per cent share available to buy for £103,200

This three-bedroom house in West London’s Feltham has a full market value of £344,000.

A 30 per cent share of £103,200 is available to buy, with rent of £405.67 payable on the remaining share. There is also a monthly service charge of £12.12.

The listing states that the property is being sold on a leasehold basis and is available via Catalyst.

 5. Three-bed houseboat, West London, £180,000

This home is a houseboat with a guide price of £180,000, but it is being sold at auction where properties tend to sell for more

This home is a houseboat with a guide price of £180,000, but it is being sold at auction where properties tend to sell for more

The houseboat has three-bedrooms and is moored at Brentford Dock with full mooring rights

The houseboat has three-bedrooms and is moored at Brentford Dock with full mooring rights

This three-bedroom property is a houseboat is for sale with a guide price of £180,000.

However, it is being sold at auction where properties tend to sell for higher than the initial guide price.

The boat is situation in Brentford Dock and has full mooring rights. The mooring rights licence is up to 2039 at £468 a month, covering water rates and site maintenance. The property is being sold by Auction House London.

The mooring would therefore add £5,616 per year in costs. 

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Modest four-bed 1950s house in one of the last undeveloped waterfront plots in millionaire’s playground Sandbanks goes on the market for £4m

A modest 1950s house is up for sale for a whopping £4million – because it is one of the last undeveloped waterfront plots in the exclusive enclave of Sandbanks.

The Breakers is a relatively unremarkable two-storey home from the front but it backs directly onto the award-winning Sandbanks Beach in Poole, Dorset.

The property has been used as a holiday home by the same family for more than 70 years but they have now decided to sell up.

The new owner will most likely demolish it so they have a blank canvas to create an ultra-modern mansion in keeping with most of the other properties on the sought-after peninsula.

Experts say a 5,000sq ft detached mansion could be built on the plot which would be worth £7.5million when complete.

The Breakers is a relatively unremarkable two-storey home from the front but it backs directly onto the award-winning Sandbanks Beach in Poole, Dorset

The Breakers is a relatively unremarkable two-storey home from the front but it backs directly onto the award-winning Sandbanks Beach in Poole, Dorset 

Experts say a 5,000sq ft detached mansion could be built on the plot which would be worth £7.5million when complete

Experts say a 5,000sq ft detached mansion could be built on the plot which would be worth £7.5million when complete 

To the back of the property is  a stunning panoramic view of Poole Bay. It even has private direct access to the sandy beach from a gate at the bottom of the garden

In 2000, the area was named the fourth most expensive place to buy residential property in the world, behind Tokyo, Hong Kong and London

In 2000, the area was named the fourth most expensive place to buy residential property in the world, behind Tokyo, Hong Kong and London

The Breakers has 1,295 sq ft over two floors with a dining room, lounge and kitchen downstairs and four bedrooms, although one is a box room, and a family bathroom

The Breakers has 1,295 sq ft over two floors with a dining room, lounge and kitchen downstairs and four bedrooms, although one is a box room, and a family bathroom

An image of the sitting room inside the modest 1950 property

An image of the sitting room inside the modest 1950 property

The property is on Banks Road and sits in a long plot of land with trees shielding it from the road.

But to the back it has stunning panoramic views of Poole Bay. It even has private direct access to the sandy beach from a gate at the bottom of the garden.

Most of the waterside plots on the millionaire’s row have been redeveloped over the past 20 years making this sale a rare opportunity.

Sandbanks has been one of the most desirable places to live in the UK for more than 20 years and has attracted celebrities like Harry and Sandra Redknapp, TV football pundit Graeme Souness and interior designer Celia Sawyer.

The Breakers has 1,295 sq ft over two floors with a dining room, lounge and kitchen downstairs and four bedrooms, although one is a box room, and a family bathroom.

Robert Dunford, from estate agents Tailor Made, said: ‘There are so few plots left that you can literally step out directly onto the sandy beaches of Sandbanks.

‘The concealed location, set back form the road, offers owners privacy, whilst enjoying the beachfront location to the rear. The land is ultimately what someone is buying rather than the dated house that is located there.’

An old photograph of the house

An image of the property now

Then and now: The home was originally built in 1950 and has been used as a holiday home by the same family for more than 70 years but they have now decided to sell up

Another old image showing the property from a distance

Another old image showing the property from a distance

Another view of the property in present day that backs directly onto the award-winning Sandbanks Beach in Poole, Dorset

Another view of the property in present day that backs directly onto the award-winning Sandbanks Beach in Poole, Dorset

An image of one of the four bedrooms in the two-storey home

An image of one of the four bedrooms in the two-storey home 

Another image of one of the four bedrooms in the the £4m valued property

Another image of one of the four bedrooms in the the £4m valued property

The Dorset property has access to the beach with stunning views

The Dorset property has access to the beach with stunning views 

An image showing the kitchen of the 1950's modest home

An image showing the kitchen of the 1950’s modest home

In 2000, the area was named the fourth most expensive place to buy residential property in the world, behind Tokyo, Hong Kong and London.

And that doesn’t seem to have slowed down in recent years. In March a 117-year-old waterfront chalet bungalow set a new record for the peninsula when it sold for £13.5million.

Dunford added: ‘The current home is simply not fit for purpose for modern day living, so I full expect to see an architectural masterpiece in its place, in the years ahead.

‘We are in such a fortunate position as agents to be able to offer for sale this detached home and experience the journey the buyer takes in making it their dream home.

‘We have already received offers, ahead of the best bids by date set, and we therefore expect this to be sold imminently.’

Tailor Made are accepting best bids by Friday.

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The Benefits Screenwriters Will Enjoy After The Strike Include Juicy Bonuses, Better Salaries & Limits On AI

The Benefits Screenwriters Will Enjoy After The Strike Include Juicy Bonuses, Better Salaries and Limits On AI
Actors picketing outside Paramount studio.

From the first minute of this Wednesday, the screenwriters’ strike will become part of Hollywood history. The leaders of the screenwriters’ union, the Writers Guild of America (WGA), have ratified the agreement reached with the studios on Sunday. On Tuesday afternoon, WGA leaders endorsed the final text of the contract, putting an end to the 148 days in which the scriptwriters turned off their computers, and brought the entertainment industry to a halt.

The agreement has an estimated value of $233 million a year, a much higher figure than the $83 million that executives put on the table in the first round of negotiations. Hollywood, however, is still a couple of weeks away from returning to normal. Actors are still on strike.

The 11,500 members of the WGA will vote between October 2 and 9 on the collective contract that is on the table. The WGA’s negotiating committee made it clear it was pleased with the deal struck on Sunday, describing it as “exceptional.” Following the tentative agreement, the leaders of the organization began to explain the benefits contained in the new 94-page text, which will be in force for three years.

The deal will 5% increase writers’ basic pay in the first year of the contract’s term, 4% in the second year and 3.5% in the third. It also includes bonuses for hit shows online, and restricts the use of artificial intelligence. Now that WGA leaders have voted to recommend the tentative agreement, writers will be able to return to work, starting Wednesday.

Talk show writers are expected to be the first to return, as they were the first to walk off the job when the strike was called. These shows are set to go back on air in the first days of October.

As the scriptwriters requested, the new collective contract will offer protections against the emergence of AI in the industry. Under the deal, the tool cannot be used to write a script or rewrite a new version of one, not can it be credited as a writer instead of a human. Studios will not be able to force a screenwriter to use an AI program, such as ChatGPT, to assist with a script. The WGA will have the final say, on behalf of its members, on whether or not to allow creative materials to be used to train or develop artificial intelligence software.

The studios also agreed to a new model for residuals, the payment that is given to members of a production when a program is broadcast in a new market or platform. Under the new system, the bigger the viewership, the more a screenwriter will be paid.

This was one of the points that had stalled negotiations for weeks, as studios were adamant about not revealing audience numbers. In the new text, however, the studios will share with the union, through a confidentiality agreement, the total number of hours a title was streamed both domestically and internationally.

The new contract promises to compensate, from January 1, 2021, the screenwriters for a high-budget title that is considered a success. This is defined as any title that is viewed by 20% of domestic subscribers to a streaming service, such as Prime or Netflix, in the first 90 days of release.

Screenwriters will receive residual bonuses for series and films that meet this threshold. The bonus will be calculated with a formula that takes into account a production’s budget, the length of the series or film and the number of views. This means, for example, that writers of a widely watched TV series will pocket about $9,000 for a half-hour episode and $14,600 for an hour-long episode. For a feature film that has cost more than $30 million to produce, screenwriters can expect a bonus of $40,500.

Under the new contract, studios must also hire a minimum number of writers to develop treatments for a TV season. At least three writers will be needed for a six-episode show, while six is the minimum for a 13-episode show. Three of these writers may have the position of writer and producer.

The wins achieved by the WGA have raised the hopes of actors on strike. Currently, no negotiations are being held between the actors union SAG-AFTRA and the Alliance of Motion Picture and Television Producers (AMPTP), which represents Paramount, Sony, Universal, Walt Disney, Warner Bros., the major TV networks and streaming companies such as Netflix and Apple TV, among others.

Actors continue to picket outside Hollywood studios. The WGA has not called any demonstrations since Sunday, but the group’s leadership is allowing writers to show solidarity with their colleagues on the picket line.

On Tuesday, the creator of the TV show Mad Men, writer Matthew Weiner, accompanied his friend, actor Noah Wyle, at one of the protests. “We would never have had the leverage we had if SAG had not gone out,” Weiner told AP. “They were very brave to do it.”

Meanwhile, the industry is coming under greater pressure. Striking actors voted on Monday to expand their walkout to include the lucrative video game market, which recorded nearly $35 billion in profits this year.

The threat promises to extend the wave of strikes that the United States has been experiencing. The video game companies under fire are Activision, Electronic Arts, Epic Games, Take 2, as well as the corresponding divisions of Disney and Warner Bros.

“It’s time for the video game companies to stop playing games and get serious about reaching an agreement on this contract” SAG-AFTRA President Fran Drescher said in a statement. The studios must sit down at the negotiating table if Hollywood wants to see the light at the end of the tunnel.


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This Friday Is Going To Be The Busiest Day Of This Year For Moving House

Myra Butterworth paid more to move home on a Friday

Myra Butterworth paid more to move home on a Friday

Back in 2006, I was selling my third property and buying my fourth.

I knew the golden rule of not moving on a Friday.

Not only it is more expensive as it is such a popular day to move house and removal men are in high demand, but if anything goes wrong, you have less time to sort things out.

If things go wrong, you have to patiently wait for the weekend to pass and solicitors to return to their office on the Monday.

However, I still ended up trying to move on a Friday in December.

As well as starting a new job that week, I needed the weekend to settle in and it was December. Surely in the depths of winter, just before Christmas, fewer people would be moving and I could get away with moving on a Friday.

So I agreed to the long chain moving on that Friday, in the hope of getting the deal done.

However, what I forgot to factor in was Christmas parties, something my seller’s solicitor conveniently didn’t mention.

Indeed, that very morning on moving day, our solicitors and estate agents were all talking to one another, suggesting everything was on track to complete contracts and move house. My large removal van turned up to my home and the removal men started loading it up.

It was during this process, around lunchtime, that things started to go extremely quiet. I soon learnt that my vendor’s solicitor had left the office for the afternoon. Apparently, to go to his office Christmas party, I was told.

It meant that he could not confirm whether he had received my money, which was being transferred to the vendor.

At this point my vendor’s estate agent started negotiating with me so I could at least unload my removal van at what was going to be my new home.

They audaciously offered a one-hour slot to unload as much as I could, to store my items in my vendor’s property over the weekend.

This offer would cost me something to the tune of £1,500 (remember this was in 2006, which taking into account inflation is more like £2,500 today).

It also meant I had to deal with my buyer’s removal men who were just turning up to my property.

A deal was done and contracts were completed on the Monday. I hope my buyer’s solicitor didn’t have too much of a hangover during the weekend.


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