London homeowners are nearly £3,500 worse off a year than they were when David Cameron first took residence in Downing Street, with disposable income shrinking rapidly.
Wage inflation was outstripped by rising rents and mortgage payments last year, meaning there has been a 16% drop in London homeowners’ disposable income since 2010.
The Affordability Watch report by property agent Cushman & Wakefield showed homeowners with children are among the worst hit.
It said that rising childcare costs means they have dropped into negative territory and are overspending by £10,767.
Conversely, renters in London are in a financially better position, with disposable income of over £25,000; 43% higher than owner-occupiers.
However, Cushman said 2015 could be a better year for consumers’ wallets as falling oil prices should help trim energy costs to households.
