Property hunters who pocket an average wage may miss out on owning a home in London .
Research from the Centre For London’s Commission On Intermediate Housing revealed London’s housing market might become unaffordable for “modest earners”.
It reached its findings, published in document Fair To Middling, in a study based on six fictional households.
The aim was to put the spotlight on professionals such as a primary school teacher, bus driver and electrician in a bid to pinpoint the link between earnings and house prices in four of the capital’s boroughs.
It suggested “very few” who do not currently own their property will be able to live in vast sections of the city in future. For example, properties in Kensington And Chelsea were off-limits to all categories.
It found only a doctor, solicitor or journalist could buy a pad in Haringey, while a senior nurse and a teacher would be priced out of the capital within two years.
It said an increase in intermediate housing –classed as sub-market properties for those on modest incomes – could ease the situation, but currently amounted to less than 2% of stock in London.
Director at Centre For London Ben Rogers said: “Ever increasing rents and property prices combined with high costs of living have hit London’s modest earners hard.
“As a result, the capital it is increasingly finding itself home to the endies – people who are Employed but with No Disposable Income or Savings.
“As this report argues, more needs to be done to help London’s modest earners to find decent and secure homes in the city.
“Failure to provide affordable homes for modest earners will create a hollow city, with only the richest and the poorest of our society able to live in the centre.”
The institution said London’s market had been subject to a “hollowing out” of those on low-to-middle income salaries.
It is calling on housing associations and council to work with employers, developers and lenders to increase the supply of properties to both buy and rent.
Head of people at Canary Wharf -based KPMG Marianne Fallon said: “As a large employer we recognise the impact this situation has on our staff as well as our communities, and are delighted to support the launch of the Centre For London’s report to consider solutions for families with low- and middle-incomes.
“For those who are struggling to afford a home, the impact is huge, not just affecting them in the here and now, but also potentially affecting their family’s social mobility for generations – it’s time for that to change.”