First-time-buyers in London will need £100,000 deposit by 2020
Report reveals shocking lack of affordability in the capital
January 25, 2013
Paula Higgins condemns spiralling house prices in the London Evening Standard.
Only the wealthiest of young people will be able to afford a home in London by 2020 a report by Oxford Economics has revealed. If prices continue to rise at current rates the price for the average first-time-buyer will rise from £333,629 at the moment to £489,214 in 2020. Considering the average required deposit is 25% first-time-buyers will have to raise over £100,000 just to be considered for a mortgage.
HomeOwners Alliance chief executive Paula Higgins was quoted in the Evening Standard saying: “Young people are having their dreams of owning a home smashed. That aim is almost completely out of reach for anyone under 40 who doesn’t earn a telephone-number salary. London is turning once again into a city of renters — and it isn’t just bad for aspiring home owners but for the whole capital. It means we have a more transient, restless population without a stake in the future, and no long-term attachment to their communities. Young people who want to own their home and also those couples who want the space to start a family have to move out of London.”
Rising prices will continue to push home ownership in the capital to all new lows. Our report The Death of a Dream found that home ownership in the UK is at an the lowest level since 1988. If you want to find out if you can afford to buy read our guide How much can I afford?