The study found that a fifth (21%) of people living in the UK capital would be unable to make their next rent or mortgage payment if they found themselves out of work.
The bleak picture in London is mirrored across the UK, according to the research from Purplebricks Mortgages.
One in five Brits are walking a financial tightrope and would be unable to pay their next month's rent or mortgage if they lost their job, the research reveals.
The alarming findings suggest millions of Brits are surviving from paycheque to paycheque with little or no savings put aside in case of emergencies.
According to the poll of 2,000 UK adults, those aged 45 and 54 were the most at risk of losing their home, with more than a quarter (28%) unable to survive into the next month.
Brits aged 35 to 44 were second most at risk, with 27% saying they’d miss the next month’s rent or mortgage payment, followed by 26% of those aged 18 to 24.
Just over a fifth (21%) of Brits aged between 25 and 34 said they would be in financial hot water if they lost their job, and some 15% of the 55 and over category said the same.
Far more Brits said they would struggle to make payments on their home if they were out of work for a second month, with Gen Z the most at risk at more than two-fifths (43%).
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The average monthly mortgage repayment on a house in England is £1,360 [1] and the average monthly rental payment in England at £1,369 [2].
With the average person in England and Wales earning a pre-tax salary of £37,430 [3], this gives a monthly take-home total of around £2,414 leaving between £1,054 and £1,045 after mortgage or rent is paid.
Newcastle homeowners admitted they are in the most financially dangerous position with nearly a third (32%) saying that they could not survive a month if they lost their job.
Managing Director of PurpleBricks Mortgages, Jo Pocklington said: “When we assess someone's credibility for a mortgage, we always stress to the client the need to consider how they would cope if they lost their job.
“As wonderful as it will feel to get your hands on your first front door keys, it will feel horrendous if you ever have to hand them back over should the worst happen.
“Life has its ups and down, and you can’t prepare for every eventuality - but you can do your best to mitigate any potential risks by not overstretching yourself from the start.
“As we’ve seen in recent years, mortgage interest rates took a sharp and unexpected rise, catching many homeowners out.
“But there are things that can mitigate against lost income - these include mortgage insurance, or taking a mortgage holiday, which can give borrowers a few months reprieve while they secure a new job.”