London homeowners already pay the biggest share of their take home pay towards mortgage repayments compared with any other region. First-time buyers in the capital spend more than half their earnings on their mortgage, compared to 37pc in the South West, 26pc in Wales and 19pc in the North of England.
As rising mortgage repayments further eat into their income, so too will soaring utility, food and tax bills. This will further stretch buyers’ ability to afford a new or existing loan.
A recent survey of 2,000 adults found three-quarters expected to be worse off this year as the cost of energy, food and fuel soared alongside controversial tax rises in the form of the National Insurance increase. The research, by insurance broker LifeSearch and the Centre for Economics and Business Research consultancy, found those in London would be hit hardest.
The average household in the capital is expected to be £321 worse off each month, or £3,859 a year, compared with the rest of the country whose costs will rise by £252.