Ah, Valentine’s Day: couple’s offers, set menus and two-for-one presents. For London’s singles, it’s one other reminder that singledom is costlier. On one earnings, payments, lease, groceries — and houses all value extra.
New knowledge from Zoopla exhibits that, throughout all London boroughs, the typical month-to-month mortgage cost on a one or two-bedroom house is £1,500 per thirty days, whereas the median month-to-month earnings is £3,837. Which means that, on common, single Londoners are spending 39 per cent of their earnings — earlier than tax — on mortgage funds.
Mortgage funds are greater than £1,000 in all London boroughs which, unsurprisingly, is considerably greater than different elements of the UK. In Aberdeen, for instance, which is the UK’s most inexpensive location for single patrons, mortgage funds are simply £510.
Zoopla’s affordability calculations are based mostly on the ONS’ earnings knowledge, with an adjustment for earnings progress since April final yr.
It assumes that patrons paid a 15 per cent deposit and have a mortgage fee of 4.7 per cent.
London’s most inexpensive boroughs
Havering is the capital’s most inexpensive space for single patrons, Zoopla discovered.
Within the east London borough, the typical one or two-bedroom property prices £306,480, with single patrons paying £1,100 per thirty days in mortgage funds. This represents 29 per cent of the typical purchaser’s gross month-to-month wage of £3,850.
After Havering, singles on the lookout for budget-friendly boroughs ought to head south. Particularly, to Croydon, Bexley and Sutton, the place one and two-bedroom houses value £313,550, £323,720 and £323,330 respectively.
In these Croydon and Bexley, mortgage repayments characterize 30 per cent of the typical earnings; in Sutton they’re 31 per cent.
London’s most costly boroughs
Conversely, Kensington and Chelsea is London’s most costly borough for singles. Not solely does the typical one or two-bedroom house value greater than anyplace else in London (£925,870), however the mortgage repayments are 73 per cent of the typical individual’s month-to-month wage.
The typical mortgage reimbursement, based on Zoopla, is £3,310, whereas the typical individual within the borough earns £4,535 per thirty days.
Westminster is the second-priciest borough, adopted by Camden and Hammersmith and Fulham. In these three boroughs, mortgage repayments will take up 64, 61 and 53 per cent of month-to-month earnings respectively.
The typical one or two-bedroom house in these areas prices £784,230, £657,200 and £612,990.
“For singletons, shopping for a primary house can really feel slightly bit like relationship and similar to relationship, first impressions matter,” says Daniel Copley, client professional at Zoopla.
“Nevertheless, it’s vital to dig deep into your potential new house because it’s what’s beneath the floor that determines long-term compatibility. Take your time and do your analysis earlier than making that final dedication to swipe proper on a house.”
Kensington and Chelsea is London’s most costly borough for singles
Matt Writtle
After all, shopping for a house as a singleton is tougher as a result of the price of the property will not be break up between two individuals. Final yr, analysis from Mojo Mortgages calculated {that a} single first-time purchaser would want to save lots of for greater than 9 years to construct a deposit sufficiently big to afford a typical London starter house.
This was attributed to the top of the Assist to Purchase scheme, which allowed first time patrons in London to acquire fairness loans of as much as 40 per cent of a brand new construct property’s worth, in addition to decrease borrowing energy.
However with stamp obligation rises in April, the disparity between singles and {couples} shopping for in London might widen additional – particularly if they’re first-time patrons.
At the moment, stamp obligation aid for first-time patrons is utilized to purchases of first houses as much as the worth of £650,000. However from April 2025 onwards, this may drop to £500,000.
In line with Zoopla’s knowledge, the typical value of a one or two-bed is above £500,000 in eight boroughs: Hackney, Richmond upon Thames, Wandsworth, Islington, Hammersmith and Fulham, Camden and Kensington and Chelsea.
In these areas, subsequently, the typical first-time purchaser is not going to high quality for any stamp obligation aid and pays the identical as those that have bought a house earlier than.
In Hackney, for instance, the stamp obligation on the typical one or two-bedroom house (£519,070) will rise by £11,250. Earlier than April, it will value £4,703; after the deadline, patrons pays £15,953.
Likewise, first-time patrons in different boroughs may anticipate to see their stamp obligation soar. No surprise, then, that patrons are at the moment pushing to shut offers earlier than the adjustments come into drive.
