High prices close doors on capital's key workers

It points out that the average house price for first time buyers in London is £97,300 - well beyond the means of relatively long-serving nurses, teachers and social workers.

A nurse with five years' experience would only qualify for a mortgage of at most £52,725 on an income of £18,500, and teachers with the same length of service only £65,000.

At the same time Closing Doors reveals that there are 178,000 households on council waiting lists, and housing association supply is falling well short of demand. Last year only 11,170 new housing association homes were built in London. The report adds that the mismatch between demand and supply is forcing councils to place more and more people in temporary accommodation at vast expense to the public purse.

Last year London councils spent £140m in council tax and housing benefit on temporary homes.

The report spells out the impact of the housing shortage on the London economy. It says: "Key workers, like teachers and nurses, so vital to the life of the capital, can be discouraged from taking up jobs, or leave the capital after completing their training. London's emergency hospitals have one in seven nursing posts unfilled and the lack of affordable housing will make it more difficult to attract staff."

London Housing Federation head Sue Ellenby said: "London can't possibly tick without its key workers but many of them are struggling to live in this city, even those earning what many would class as a good salary."

She added that it was "ludicrous" to "throw away money on short term solutions."