Million pound London flat lands on affordable housing list

August 27, 2015

A sign is seen outside some newly built apartments in Berkhampstead, southern EnglandFor most people a home worth over a million pounds ($1.6 million) is nowhere near affordable but that is just how one London flat has been tagged by a housing association in Britain’s capital.

Buyers taking a 25 percent stake in the three-bedroom flat in Hackney, east London, under the shared ownership scheme will be saddled with estimated monthly mortgage repayments of just over 1,000 pounds.

But when you add on the monthly 250 pounds service charge – and the rent payable to Islington and Shoreditch Housing Association on the three quarters you don’t own – a buyer would need over 2,400 pounds a month of spare cash.

Considering the average British wage was only around 27,200 pounds last year the monthly payments alone would be stump most people.

However, those who can scrape the money together, the flat’s value will increase 5.0 percent next year and another 2.5 percent in 2017, according to a Reuters poll published on Wednesday.

($1 = 0.6391 pounds)

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