Lack Housing Options in London for someone earning £42.000

[Deleted User]

Not an uncommon problem. 

With your income can buy around 200k depends on your deposit and if you are flexible with location.

My brother has a few HMO and even high earners earning £60k+ are his tenants for his HMO property.

When you say London, might have to consider outer zones like zone 5,6 and a bit further away from central.

For example bought a 2 bedroom flat in Belvedere zone 5 in 2015 for £155k same now about £250k.

A lot of people also moving outside London due to increasing prices of London so depending on your role and if you can work remotely etc. 

AlexMac

I can’t improve on the ideas above. So all I can add is sympathy; and admit to (and apologise for?) being part of the postwar (1945-1960’s)“baby boomer” generation who unwittingly caused the problem. 

Evidenced by me being able to buy my own succession of (Freehold!) 3-4 bedroom homes over the past 50 years for what now seems like peanuts and despite always only ever earning an average salary;

£10k in 1995, £34k in 1985, £67k in 1997 (all admittedly needing lots of DIY, and the latter a wreck needing £30k to make it habitable) so that after trading up a few times more in the silly inflationary years of the 90’s and noughties, still on average salaries, we had enough equity to manage a £720k gaff in 2011 (now probably worth well north of a million)

Succeeding generations have had it much tougher as evidenced by our kids and grandchildren; 

• Generation X (born 1965–1980) on average wages could probably scrape together the cash for a decent home… but after initially buying an ex-council place in London our lad had to move 100 miles away to find a decent affordable family home as he began to breed…
• Millennials (1981–1996) and Generation Z (1997–2012) are, like you, finding it almost impossible here in London. Our granddaughter has just matched your salary, now rents with the help of sub-rent from a lodger, but won’t be able to buy much round here until we peg out or bung her a wad? 
• And who knows how Generation Alpha (2013–2025) will ever be able to cut the Apron Strings?

Of course, you could argue that it’s not really my fault, but down to political will or lack of it;
 

-  the end of adequate, secure social rented housing (“right to buy” and hardly any new ones being built; well over 250,000 council house completions pa in the mid 1950s - barely ten percent of that pa now by local authority and social housing providers)

-  the drying up of generous state and local authority incentives to home ownership, all of which helped me (a 100% mortgage from the regional council - the GLC, Home improvement grants for stuff like a roof & C/H, and “MIRAS”; income tax relief on mortgage interest which equalled 30% of the cost of my second purchase over the five years I owned it…)

-  increasing gaps between the rich and the poor; widening social and economic inequality… combined with housing shortages to push prices up 

- lack of regulation of “ fleecehold” service charges for those who can only afford leasehold homes…

But it’s easier to blame us, your grandparents, as otherwise there could be a revolution led by “generation rent” or “generation live with mum and dad”?

EDIT- 24 hours later;

co-incidentally next morning , and after my polemic in support of the OP, I see a BBC news Report of a similar situation in Australia; a “Robin Hood” social media activist protesting their “generation rent” crises; 

Jordan van den Berg: The 'Robin Hood' TikToker taking on Australian landlords https://www.bbc.co.uk/news/world-australia-68758681

Bookworm105

sorry but key worker or no, you have to adjust your life expectations to match the London housing market.
When you do become a homeowner I'll guarantee you won't sell the property at below market price to help someone on to the property ladder.

Working (living) in London is all about compromise. "Blow" your money on high rent because you want to be close to the city "action", or "blow" your money on commuting because it gets you a (nicer?) property in a some sleepy & boring suburb.

Lifestyle (age?) is what matters, not whether you tick the box for being a "success" in life because you have a (mortgaged)  property in your name.

EssexHebridean

One bit of advice I will give you OP, for whatever, wherever and whenever you buy somewhere. Start overpaying your mortgage from the first month, and make sure you choose a product that allows at least some form of overpayment. Even rounding your monthly payment up to the nearest £10 makes a difference over a 25 year mortgage term, and if you can manage to increase that a bit as time moves on, you will be putting yourself in a decent place for better deals when your fixed rate is up, a shorter time paying off the loan on the property, and perhaps most relevantly of all, less interest paid overall. 

Good luck with your journey to becoming a homeowner. 

Windofchange

I’m in zone 5 south London and there are flats here for around the 200k mark which is in your price range assuming you have a 10% ish deposit. The commute is no biggy, and my local station gets me to central London in around 15 mins. I’m a key worker too (nhs) and used to work shifts, though on a more regular Mon - Fri now. What is it about working shifts that means you can’t commute? It’s actually easier getting back from a night shift as you are coming out of London whereas everyone is coming in in the morning as an example. Always used to get a seat on the train, and home in 45 mins including the walk. I’m moving roles shortly and my commute will be just over an hour each way, but that’s my sacrifice for having a large home with a garden etc to come back to. 

If home ownership is your goal then you’re going to need to compromise. You’re not going to be buying or renting for that matter in zone 1-3. It might be that a studio or 1 bed is all you can afford out in the burbs, and you can, but is that what you want? 

GDB2222

The op has not logged on since asking the question, but he may have another account? 

MobileSaver

AlexMac said:

Of course, you could argue that it’s not really my fault, but down to political will or lack of it;

Or you could just accept that we live in a market economy and like most things it is mainly down to supply and demand.

The OP wants to live in one of the most popular cities in the entire world so it is not surprising that housing options are limited. When you bought a £10k home in 1995 the population of London was less than 7 million, today it is almost 10 million yet only around half a million new homes have been built in London since then...

YoungBlueEyes

£42k is a decent amount of money so it's back to the old mantra - House, price, location. Pick any 2. 

You don't say exactly what your work is, but we have keyworkers oop norf too you know. I can't think of any that are exclusive to London... 

Honeylife

Investigate all the Key Worker Housing Schemes in your neighbourhood. 

You are a Key Worker in London.

These include doctors, nurses, midwives, paramedics, social workers, care workers, and other frontline health and social care staff including volunteers. Probationary workers, Firemen, police officers, teachers, civil servants in the HOC and a few others I can't remember at this moment;  

The scheme is usually run by the Housing Associations.

You have to live, and/or work in your Borough and get extra 'points' if you were born in the Borough.  You go on a list.

A London relative got a place within days of applying as he ticked all the boxes, so zoomed to the top of the list, and was sent to view the vacant place immediately. (A newly built flat in central London). Then the legislation changed to allow him to buy from the Housing Association (with a small discount). He had been saving to buy for years and was considering moving out of London. With the savings, he was able to purchase the flat. He still lives in it.

ReadySteadyPop

RelievedSheff said:

I guess your other option is to transfer your job move to an area where housing is more affordable.

 Or wait for higher interest rates to do their work, something definitely kicking off in the markets today.