Average home in the borough now costs almost £400,000 which is £228,000 more than national average
New figures from the Land Registry have revealed the shocking cost of the London housing market with an average property in Tower Hamlets now costing over £228,000 more than the national average. The statistics for December 2013 showed a 9.2% jump in house prices over the last year adding yet further concern that average earners are being priced out of the borough.
Labour politicians have warned of segregated communities developing as poorer residents are forced out of the borough by rising rents and an inability to buy. The average household income in Tower Hamlets is £29,550 making the average home cost more than 13 times the take home household pay. At the bottom end of the scale over 20% of the borough’s households survive on an income of £15,000 or less.
The price rises come on top of a study by housing campaign charity Shelter last year which suggested that average private sector rents in Tower Hamlets now take up 69% of average family earnings.
Labour’s Housing Spokesperson, Cllr Abdal Ullah, said:
“When the average London home now costs £400,000 you know there is a problem. Local people or modest and even higher incomes are increasingly being pushed out by rising rents and impossible to afford house prices. Even those on so called ‘affordable’ rents are suffering as even these are set at 80% of the average rate, that’s not affordable by any definition I‘ve ever heard.”
Labour’s candidate for Mayor of Tower Hamlets, John Biggs, said:
“These figures show that hardworking people in Tower Hamlets are being held hostage by house prices. Many are priced out of the market and communities are being forced to move. We need a housing market that delivers for everyone in our community and not just the super-rich.”