Shelter: 30 years of saving for a deposit in London

Published on in Banking News by

The homeless charity Shelter has revealed that single savers will have to wait 30 years before they’re able to afford a deposit in London, although this is reduced to 14 years on a national average.

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This is due to soaring house and apartment prices, as land value within the capital continues to increase at an exponential rate. This has caused many young people to re-think their plans about buying a home, with many resigning to a life of renting indefinitely.

The average property value in London is now £414,000 – up from the previous high-point of £350,000. This comes at a time when LSL Property Service – the largest UK letting agency – has reported that rent prices would increase by an average of 9% by 2015.

There are repercussions for people from all family backgrounds. The national average amount of time for couples with children to afford a deposit is 12 years, which can add an extra element of stress during the earliest years of having children.

Large regional differences are apparent too, with areas such as Kent being more expensive than many parts of London.

“This research reveals the harsh reality that young people today are facing because of our shortage of affordable homes,” said Campbell Robb, Shelter chief executive.

“These shocking results show that when it comes to saving up for a home of your own, things today just aren’t what they used to be.”

He added: “It’s right that people work hard and save up if they want to own a home, but the Government has to start meeting people halfway. Unless we see radical action to tackle our chronic shortage of affordable homes, the next generation of young people will find it even harder to find a place to call their own.”

It’s believed that the UK’s recent recession is at the heart of the problem, with young people increasingly having less access to reliable income and long-term housing solutions.

If you want to save up for a big investment, compare bank accounts and interest rates to reach your goal more quickly.

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