Typical first-time buyers will need to earn over £100,000 a year to afford to purchase their own property by 2020.
New research by housing and homelessness charity, Shelter, shows an increase of over a quarter on the £80k required for a typical mortgage today.
Projections show that the average price of a house in the capital will be £558,000 and the deposit, £138,000.
House prices have risen fifteen times faster than wages in London.
The Town and Country Planning Association revealed that 312,000 homes need to be built each year, 2.7 times the 114,236 homes built on average in the last five years.
Shelter wants the next mayor to commit to building homes that people on ordinary incomes can afford.
Campbell Robb, Shelter’s Chief Executive, said: “with the situation only set to get worse, Generation Rent will be forced to resign themselves to a life in expensive, unstable private renting, and wave goodbye to their dreams of a home to put down roots in”.
Mike, a nurse working in London, says that he believes “people with ordinary incomes are having to move out of the capital”, adding that “on a nurse’s salary and with house prices so high, I can’t see how I’ll ever own my own home”.
He says “it just seems so unfair – if you work hard, you should be able to afford a place to call home.”
Shelter has been helping people fight bad housing and homelessness for 50 years. For free advice visit shelter.org.uk/advice or call 0808 800 4444.