Londoners say they have been priced off the property ladder for good

Photograph: Christopher Furlong

Six in ten Londoners who rent their home and half of all private renters say they do not believe they will ever get a foot on the housing ladder in the capital, according to a new survey.

The poll, commissioned by London Councils, found that almost three-quarters of Londoners do not believe that there is enough decent housing in the capital, and four in ten of those in private rented accommodation say they would like to be able to move home, but cannot afford to do so.

Ipsos MORI surveyed 954 Londoners last month on behalf of London Councils, the organisation which represents the capital’s 33 local authorities and has campaigned on housing policy and highlighted the shortage of affordable homes to rent and buy across London.

The average house price in March 2012 was £343, 522 (Land Registry figures) – up 0.7% from the previous year.

Rents in London have continued to rise over the past year, with the average monthly rent now £1,032.

The Ipsos MORI research found 82% disagreeing that housing in London would become more affordable over the next two years or so (61% strongly disagreeing) with 78% of private renters taking this view.

Two thirds (62 per cent) have lived in London for more than 20 years and 68% have lived in their current home for more than five years.

While 86% say their home is suitable for their current needs, a fifth of those with children disagree (21%). Among the latter 52% say that if it meant they were able to get better accommodation they would be willing to move out of their area.

This sentiment is also held by 44% of Londoners, rising to 53% of private renters and, thus, 57% of 18-24s and 52% of 25-34s.

London Councils’ Executive Member for Housing, Mayor Sir Steve Bullock, said:

"This poll shows that many Londoners who rent their home feel they have been priced out of the housing market for good.

"London is currently in the throes of a housing crisis and this survey illustrates that there is an acute shortage of affordable accommodation, resulting in rising rents and house prices that are steadily increasing beyond the reach of first time buyers and families who want to rent."

"More new homes need to be built at the right size, in the right place and at the right price, and the market is still not delivering this."

Text from London Councils press release