Over 15 years to save to buy a first home in Lambeth and Southwark; We have to solve London’s housing crisis – Tessa Jowell

New House of Commons Library analysis commissioned by Tessa Jowell today reveals the true impact of London’s Housing Crisis on first-time buyers in Lambeth and Southwark.  

Fresh research reveals that the average first time buyer in Lambeth and Southwark would have to wait over 15 years until they could save a typical 10% deposit without parental help with average house prices at £350,000 in both boroughs.

The figures are based on average earnings, which are £33,000 for an individual working full time.

This is far higher than other areas. In Barking and Dagenham, for instance, the average time it would take a first time buyer on average earnings to save for a deposit is only just over 9 years.

Tessa Jowell, Labour MP for Dulwich and West Norwood said:

“This is the hard truth about how London’s housing crisis denies the dream of owning your own home to young people in places like Lambeth and Southwark.

“We need to build one London not two where everyone has the chance to live in a decent home and first time buyers aren’t excluded from the housing market unless they have access to the bank of mum and dad.

“First things first -  the next Mayor has to build many more homes, plain and simple,  but we also have to develop a serious plan to help thousands more Londoners get on the housing ladder.

“A more equal London has to mean that it’s possible to buy your own home. We have to solve London’s housing crisis if we want our city to succeed, with a Labour government and mayor working together.”

In addition, Tessa Jowell is calling on people to sign her petition to end what she terms 'the great housing giveaway'. A disastrous change to planning laws means that billions of pounds worth of affordable housing payments could be lost forever - and threatens to destroy the social mix in London for generations. These payments are vitally important to ensure a supply of affordable homes for families, and to ensure that our neighbourhoods remain mixed communities.

Local residents are encouraged to sign: www.endthegreathousinggiveaway.com

Background:

Figures based on Office for National Statistics, House Price Statistics for Small Areas in England and Wales, 1995–2013; Annual Survey of Hours and Earnings 2013

Savings estimated at 7% of gross annual income in line with latest ONS savings ratio figures: here

For full details broken down across London by Local Authority and Parliamentary Constituency, contact Tricia for the document.