For many young people in ‘#generationrent’, the prospect of getting onto the property ladder is something which seems impossible on an average London salary.
Instead, people are often choosing to rent long-term as they struggle to get the money together for a housing deposit.
London’s housing market
House prices in London have been increasing consistently for more than three decades. In 1986, the average price of a home in the capital was £55,000.
Today, that average is £600,000 – nearly 12 times the cost of a property 30 years ago.
And this is over £200,000 more expensive than the region in second place. In the South-East of England, the average house costs around £321,174.
An expensive place to rent
But renting doesn’t solve the financial problems for living in the city.
It looked at the average cost per month of a three-bedroom home and found that London’s monthly rent of £5,187 exceeded rental prices across the rest of Europe.
Though it’s still cheaper than renting Tokyo, New York, and Hong Kong.
A new solution?
As the cost of buying continues to exceed people’s budgets, many home buyers are trying to find new ways of securing their dream home.
Research from Santander suggests that almost half of buyers would consider taking out a mortgage for a 40-year terms in order to get on the property ladder – far more than the typical term of 25 years.
This marks a big change compared to previously. Just 5 years ago, less than 36% of mortgage products had a maximum time of 40 years. This has now risen to 51% and many people see it as a viable option.
Or you can look at buying property in Yorkshire, the North West and the North East. Properties in these areas are as much as three times cheaper than London. But then you wouldn’t be living in the best city in the world.
Looking for more?
City News spoke to Sadie Gains from Origin Housing and asked her what she thought about the lack of housing for young people in the capital.
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Short Headline
Standfirst
Published Article
HeadlineYoung people still struggling to climb housing ladder in London
Short HeadlineSignificant house prices holding buyers back
StandfirstAre extended mortgages the answer to buying in the capital?
For many young people in ‘#generationrent’, the prospect of getting onto the property ladder is something which seems impossible on an average London salary.
Instead, people are often choosing to rent long-term as they struggle to get the money together for a housing deposit.
London’s housing market
House prices in London have been increasing consistently for more than three decades. In 1986, the average price of a home in the capital was £55,000.
Today, that average is £600,000 – nearly 12 times the cost of a property 30 years ago.
And this is over £200,000 more expensive than the region in second place. In the South-East of England, the average house costs around £321,174.
An expensive place to rent
But renting doesn’t solve the financial problems for living in the city.
It looked at the average cost per month of a three-bedroom home and found that London’s monthly rent of £5,187 exceeded rental prices across the rest of Europe.
Though it’s still cheaper than renting Tokyo, New York, and Hong Kong.
A new solution?
As the cost of buying continues to exceed people’s budgets, many home buyers are trying to find new ways of securing their dream home.
Research from Santander suggests that almost half of buyers would consider taking out a mortgage for a 40-year terms in order to get on the property ladder – far more than the typical term of 25 years.
This marks a big change compared to previously. Just 5 years ago, less than 36% of mortgage products had a maximum time of 40 years. This has now risen to 51% and many people see it as a viable option.
Or you can look at buying property in Yorkshire, the North West and the North East. Properties in these areas are as much as three times cheaper than London. But then you wouldn’t be living in the best city in the world.
Looking for more?
City News spoke to Sadie Gains from Origin Housing and asked her what she thought about the lack of housing for young people in the capital.
