Evening Standard/London

House prices  are rising so quickly in London that deposits are outstripping the ability of first-time buyers to save, research has revealed.
An analysis by mayoral hopeful Dame Tessa Jowell found it would take up to 40 years for the average saver to raise a deposit  in the capital’s most expensive areas.
But in 29 out of the 32 boroughs, rises were now so rapid that typical savers might never reach the point they could put down the deposit for a mortgage.
In Hackney, the cost of a 10% deposit on a median property had risen £6,000 in a year, while a saver putting aside seven per cent of their earnings could raise only £2,200 during the same year.
It means that the years needed to save  for a deposit in the borough have risen from 17 to 19 in only 12 months.
In Wandsworth the years needed for a deposit went up from 19 to 21, while in London’s priciest borough — Kensington & Chelsea — it would take a staggering 41.7 years, nine more years than 12 months ago.
Prices  rose by less than the amount local people could realistically save in only three boroughs — Newham, Croydon and Havering.
Dame Tessa said: “London’s housing crisis has spun so far out of control it is becoming literally impossible to save for a deposit. We cannot go on like this.”
The former olympics minister is proposing to expand schemes to help first-time buyers who cannot muster deposits, such as “rent to buy” and Genie Home agreements, which offer 30-year contracts without a deposit.
She said: “Every Londoner should have a place to call home — that will be my goal as mayor.”
All of the six Labour rivals standing to be candidate for mayor of London have named housing as their top  priority.
August’s traditional decline in house prices has been much slower this month than in previous years thanks to a shortage of houses coming onto the market.
In a stark sign of the extent of Britain’s housing crisis, house prices were down just 0.8% in August, data from property  website Rightmove revealed.
The average price fall in August has been 0.5% between 2008 and 2014.
New sellers were down 8% year-on-year.
Sellers were likely to have been deterred by a lack of available homes to buy, the cost of moving and a dearth of affordable housing .
Britain’s housing crisis has seen first-time buyers unable to get on the property ladder due to a lack of homes at the bottom end of the market, and prices have soared in prime areas – such as central London – where demand far outweighs supply.
David Cameron has vowed to deliver 200,000 new starter homes, which will be sold to first-time buyers under 40 at a discounted rate.
The Labour government of 2007 set a target of 240,000new homes  by 2016, but a cocktail of a rigorous recession, tough planning laws and a lack of available land has left the market short and sent prices spiralling.
Rightmove director Miles Shipside said: “While new seller asking prices have been muted by the traditional summer holiday property slowdown, the underlying shortage of property coming to market compared to buyer demand has helped to deliver the strongest August price performance since before the credit crunch.
“Buyers can normally pick up some bargains in August as sellers who are marketing their homes when they should be holidaying often have a pressing need to sell and mark their prices down pretty aggressively.
“At 0.8% down on the previous month, this is the least generous that sellers have had to be for eight years and a clear sign of upwards price pressure in the pipeline.”
Manning Stainton estate agents in west Yorkshire saw its appraisal numbers up 21% in July as more homeowners considered selling.
Director Mark Manning added:  “It’s not that there’s no stock, it’s just that when good property does come on the demand is so high that it’s selling much more quickly than usual.
“I think the stock crisis will ease as we move into September as people start to think about moving by the end of the year, and the murmuring of an interest rate rise will spur some people into action.”
A theatre that helped launch the careers of stars including Rachel Weisz and Rory Bremner could close if plans to build flats above it go ahead.
Neil McPherson, artistic director of the Finborough Theatre in Earl’s Court, warned on Tuesday that the venue’s future was at risk.
He said: “These plans have been rejected before but they have come back again. This time the plans do include some sound-proofing but we have consulted with three consultants who say it’s not good enough for a theatre.
“The plans would put a kitchen, bathroom and living space directly above the auditorium.
“If the noise from the flat above gets to a certain level then we won’t be able to put shows on and we will close and if a future tenant complains about noise from us we won’t be able to put shows on past 9pm and we will have to close.”
The plans, submitted by freeholder Shelley Chopra, include a noise report which says there is “substantial evidence” that any noise from the flats would not “have a negative impact on the operations” of the theatre.
The theatre, which was founded in 1980, concentrates on promoting new writing and rediscovering neglected works.
Among its alumni are Wolf Hall star Mark Rylance and James Graham, who was playwright in residence. His work This House, about the dying days of James Callaghan’s Labour government, was produced to great acclaim at the National Theatre. Chopra said he was anxious to work with the theatre, adding: “We have consulted with acoustics experts and have looked at putting in carpets and other sound-proofing methods.
“The theatre will benefit from this planned development which also includes a new roof for the building and a separate entrance for them for the first time. I cannot emphasise enough, we do not want the theatre to close.”
The application, which is being considered by Kensington and Chelsea council, has attracted objections from around the world. A letter from Canada warned that the closure would be “an inestimable cultural loss for London”. A decision is due in September.