Housing Crisis in London

Young home owners are a minority in London.

The average mortgage deposit for first-time buyers is now over £60,000 and according to a report from independent analyst Oxford Economics, property prices will continue to soar in the capital over the next seven years.

Recently published data from Greater London Authority reveal that almost twice as many Londoners in the 25 to 34 age group now rent from a private landlord than those who own a property, and the gap is rapidly rising.

This is the first time tenure has been broken down by age group. Paula Higgings, chief executive of Home owners Alliance, said:

“Buying in London is open only to those with wealthy relatives and people who win the Lottery.

“This is robbing a generation of any prospect into the housing ladder and it is incredibly unfair”.

Mortgage experts answer that there had also been an increase in the number of banks and building societies prepared to offer 90 per cent mortgages in recent months, but these are still only available to borrowers with spotless credit records.

It only helps those from a wealthy background.

While owner occupation in the capital has fallen to lowest level since the early Eighties, almost one in four all over the UK say they may be forced to leave their local area because the cost of housing is too high, an Ipsos MORI survey revealed. 

The proportion is twice as high among those living in London.