London property market daunting for Gen Z despite high-paying jobs – The Intermediary
![](https://investmoneyuk.com/wp-content/uploads/2024/03/AdobeStock_456181114-780x470.jpeg)
The likelihood of Gen Z individuals securing a job that pays sufficiently to afford a mortgage on an average three-bedroom property in London is exceptionally low, leading some to consider alternative routes like property raffles.
In 2024, the staggering average asking price for such a property in the capital is £1,324,298, placing homeownership beyond the reach of many young professionals aiming to start a family.
A 2-year fixed mortgage from HSBC at 90% loan-to-value has an interest rate of 4.89%, demanding a substantial deposit and a high monthly repayment. This financial burden necessitates an annual income of at least £76,000, not accounting for the significant deposit required.
With the entire UK graduate population within the typical post-degree working age of 21-28 years in competition, and considering the broader UK workforce with degrees, the odds of landing a role that would enable buying a family home in London are slim.
Indeed lists only 12 job roles with an average salary above the threshold, with a mere 849 openings nationwide. This equates to a mere 0.00867% chance of landing such a role.
In contrast, the probability of winning a home through property raffles, such as the one offered by Elite Competitions, can be marginally higher than securing a high-paying job.
For example, winning a family home in Lancashire had better odds than landing a job with a salary capable of affording a London mortgage, highlighting the challenges faced by younger generations in the property market.
The Indeed Career Guide lists roles like IT director, tax director, and CFO, all of which offer average salaries over the £76,000 threshold needed for a London home.
However, the sheer number of eligible candidates drastically overshadows the number of available positions, underscoring the housing affordability crisis.
Alex Beckett of Elite Competitions said: “This analysis highlights not just the unattainability of homeownership in London for the younger generation, but also the need for urgent solutions to address the housing affordability crisis.
“As property prices remain high, inclusive approaches to homeownership are needed more than ever. Our property competitions offer a slice of hope and a chance to dream to all those who face the stark reality of the UK housing market.”
The situation calls attention to the urgent need for creative solutions to address the widening gap between income and housing affordability, especially in major cities like London.
With traditional routes to homeownership becoming increasingly difficult, alternative methods such as property competitions are gaining attention as a beacon of hope for many.
Source link