UK professionals working in the city of London are officially the poorest workers in Britain, according to research conducted by the UK’s largest job site, CV-Library. This is despite the fact that Londoners earn the highest average salary in the UK. Based on new roles advertised in Q3 2015, the job site revealed that the average annual salary in London is £36,905; just 16.6% greater than the national average of £31,625 per year. However, further research revealed that premium costs in the capital drastically outweigh the slightly higher-than-average salaries meaning Londoners have the least disposable income in the country.
Comparing the same basic living costs against average salary in 16 of the UK’s key cities revealed how employees in North England and Scotland are by far the richest in the UK
The results show that a Londoner wanting the same living standards as anyone else in the country will either end up in serious debt, or have to make major compromises to their living standards, despite holding senior, well-paid jobs.
Lee Biggins, founder and managing director of CV-Library, explains: “It’s not unreasonable for a UK working professional to want to come home to their own space at night. As employees, it’s advantages such as these that motivate and inspire us to do well. However, living premiums mean that this isn’t a reality for most workers in the capital and the idea of getting on the property ladder is a pipe dream, despite working hard. The fact that Londoners struggle to afford the bare essentials is worrying and may well affect the number of professionals that choose to work in the city; other cities are starting to appear as much more appealing prospects for UK workers.”
Current house prices reinforce how unobtainable it is for working Londoners to get on the property ladder; when comparing the purchase of a one-bed flat in London, to a similar one-bed flat in Hull, the difference is significant. Whilst the average cost of a one-bed flat in Hull is £72,486, the same flat in London would be £544,118; more than 7.5 times more expensive (750.6%). However, when comparing average salaries in both cities (£36,905 in London and £27,809 in Hull), Londoners only earn just under a third more (32.7%) than workers in Hull.
In real terms, a professional in Hull would spend 18.1% of their salary on a mortgage for a one bed property and still have £1,485 left in their pocket to cover bills and other living expenses. A Londoner would need 105.5% of their salary to pay the mortgage alone, leaving them in debt before they have even considered how to cover bills and other basic costs.
Biggins concludes: “Wages and living expenses in London are not relative to the rest of the UK, making Londoners the poorest workers in Britain.”
Full press release on www.cv-library.co.uk