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The Ixl Company discuss costs of living in London VS ‘Living Wage’
In the past few days multiple reports have been released regarding the cost of living in one of the most popular cities in London. The Ixl Company, based in South Quay, Isle of dogs take a look at the high cost of city living versus wages.
By: The Ixl Company
A published report claimed that a city worker that currently owns – or is planning to buy – a one bedroom flat in zone one of London city, could in fact afford to buy an actual castle in Scotland, showing the huge comparison of City living in London versus the country life. “It is still beyond me that the comparison is so extreme. Owning a castle is something you might dream about as a child, so not only is it shocking that it is relatively doable to purchase a castle to live in anyway, what is even more shocking is that for the same price, you can get a measly one bedroom flat in London” says Emma Clarkson, PR manager at The Ixl Company, South Quay.
The castle in the report was for sale at around £450,000, the average price of a flat in zone one of London, along with a high majority of new apartments in zones two and three. “It just goes to show how expensive living really is in London. It is hard for even the wealthiest of people to purchase a decent 3 bedroom apartment or house so how a couple with, or think of starting a family earning average wages could afford to live in London is beyond me” says Hicham Mouden, managing Director The Ixl Company in South Quay.
Many debates argue that the ‘living wage’, the informal wage at which you need to be paid to comfortably get by in the city you live in should be enforced in the United Kingdom, particularly in parts of the country like London where basic bills including rent, council tax and even food are more expensive than elsewhere. “The average wage in the UK is between 24k and 32k, and is slightly higher in London at around 34k, however if you consider the ‘Living wage’ it should be much higher to allow people a good quality of life no matter what city you live in. It’s fine to say that you could buy a castle in Scotland for the same price as a 1 bedroom flat, but you wouldn’t earn anywhere near enough in Scotland to afford it in the first place and so you have to pay steeper prices in bigger cities. If myself and my partner earned 35k per year and took out a mortgage for a £450,000 flat in London it would be feasible over let’s say 25 years, however if I lived and worked in Scotland that 35k would probably be nearer to 25k and so a mortgage probably wouldn’t be accepted for an amount as large as £450,000 so you can wave goodbye to your castle” says Hicham Mouden, Managing Director of The Ixl Company.
Many conversations, articles and debates surround house prices and the ‘Living wage’ however most people living and working in London accept that high costs are the price you pay for the business hub of the country, and many people go out of their way to live in such prestigious cities, and those that believe it is a rip-off simply move to a different city with cheaper expenses but also lower wages.