London homeowners £3500 worse off a year since Cameron took office

Disposable incomes have dropped 16% since 2010

Homeowners with children have dropped into negative territory and are overspending by £10,767 (Getty Images)

Rent and mortgage payments have risen so far beyond the wages of Londoners that they are on average £3500 worse off a year than when David Cameron first took office.

Wage inflation has been outstripped by rising rents and mortgage payments, meaning there has been a 16 per cent 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 per cent 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.

Research shows that Londoners are aware of the increasing financial strain of living in the capital.

According to a survey by the Mayor of London, 90 per cent of Londoners think the cost of living in the capital has increased since last year. That report shorts that the average cost of food, housing, travel and fuel has risen 9.8 times faster than wages.