Press Release: Westminster no longer affordable for MPs to live
Thursday, 03 June 2010
Revised expense-account rules mean that the 232 new MPs will be hard pushed to afford to live within the division bell area of Westminster, according to research by estate agent Marsh & Parsons.
MPs’ second home allowance in London would enable them to cover mortgage interest payments on a property bought for £333,333 – not enough to cover the price of a one bed flat in Westminster. However, the changes being introduced by the new Independent Parliamentary Standards Authority (IPSA) mean that by 2012, MPs will only be able to receive an allowance for rental properties in the capital.
Under the current system, MPs are still entitled to claim mortgage interest costs of up to £15,000 per year – sufficient to cover the monthly payments of £1,250 for a £300,000 interest-only mortgage. But those MPs who are determined to buy a property in Westminster will almost certainly have to delve into their own pockets to fund the purchase. The average price in Westminster is £623,963 – 83% higher than the London average – and a typical one-bedroom flat costs in the region of £350,000 to £400,000.
In the new system being implemented, MPs will only be able to rent properties as second homes and, in London, can claim £17,400 in rent each year. This amounts to £335 a week, which is below the average rental cost of one-bedroom flat in Westminster (around £350 per week). However, there are still options within the allowance for those MPs who insist upon living within walking distance of Parliament, such as this studio apartment on Vincent Street, for £285 per week.
Property to rent in Dukes House, Westminster, London, SW1P
Peter Rollings, Managing Director of Marsh & Parsons, said: "Some MPs took advantage of the system and the rules on expenses have rightly now been changed. After 2012, renting will be the only option open to MPs seeking a second home in London. No doubt most MPs would prefer to live a stone’s throw from Parliament, and there are properties to let within budget. However, clearly for those MPs willing to live even slightly further away from the Commons, they will be able to get more for their money."
For MPs looking to buy a property in Westminster and prepared to supplement their budget with their own money, Marsh & Parsons is marketing a one bedroom flat, with secure underground parking, landscaped gardens and 24-hour concierge for £435,000.
1 bedroom Flat for sale in Montaigne Close, Westminster, London, SW1P
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For further information please contact:
The Wriglesworth Consultancy Tom Urpeth / James Staunton 0207 427 1400
Marsh & Parsons has been part of the London property scene since 1856. The sales and lettings agent has 14 offices situated in prime positions across central, west and south London. They have an intimate and extensive knowledge of the area.
Marsh & Parsons are an independent and professional firm with a 'can-do' attitude covering all aspects of residential property. They aim to establish individual relationships with clients through a business built on energy, agility, professionalism and knowledge. Their business aim is to be the agent who not only understands the local area around their offices better than any other agent, but also to be at the heart of the community.
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