An Expected Rise: Struggling young buyers in London need a deposit of around £57,000 to get on the property ladder a report claimed.
An Expected Rise: The vast majority required to obtain a mortgage on a typical first time property is more than twice the £27, 537 average for the country as a whole according to the Halifax Generation Rent Report.
The numbers reveal the huge savings that young Londoners have put aside from their income to have any chance of owning their own property In Camden, a typical first time buyer deposit of £145,148 costs £10,000 more than the average cost of a starter home across the rest of the UK. Rising prices in the Kensington and Chelsea, the most expensive borough means that first time buyers in the area are non- existent. Considering even London’s cheapest local authority area – Barking and Dagenham – prices and deposits are still way ahead of the average for the rest of the country with would be buyers needing deposits of nearly £30,000 The Halifax Mortgage Director Stephen Noakes stated The mortgage market in London is not what it used to be, but it isn’t as bad as many people think – lenders are still lending. In the past year alone we’ve provided over £1.5 billion in mortgages to first time buyers in greater London London house price growth will be well ahead of the UK average for at least the next five years estate agent Savills has predicted.
Central London housing will get 25.6% more expensive over the 5 years to the end of 2017, the estate agent said compared to 10.2 % growth in the midlands, Wales and the North, and just 9.2% expansion in Scotland Prime central London has already seen prices boom 53% since the bottom of the trough inflicted by the credit crunch – which came to the first quarter of 2009 – and the ultra-prime sector has boomed some 58.4% in the time it said. However, Savills predicts completely flat average house prices in central London over the next year as government tax hikes spoil the appetites of so far insatiable international buyers.
After such strong growth we now expect prices to plateau in 2013. Increased taxation including stamp duty levy, strengthening sterling and a weak global economic outlook could all provide catalysts for a slowdown said Yolande Barnes at Savills But the fundamentals remain strong so we expect that growth will resume in 2014 The growth will be spread across the London Metropolitan area Savills believes It predicts that areas that are part of the outer commute will see prices up 19.2% by 2017. Huge regeneration projects in areas such as Nine Elms, White City and Kings Cross will also push up values in areas shunned by buyers while Crossrail will benefit suburbs such Ealing and Acton. Despite years of recession, London prices have been increasing steadily since spring 2009, following a collapse triggered by the banking crises. A Park Lane apartment sold for £19.5 million last week, more than five times the £3.75 million it last changed hands for in 1996. Campbell Robb , Chief executive of homelessness charity shelter, said At a time when wages are stagnating, this latest prediction is another blow to the millions priced out of a home of their own and left at the mercy of an overheated rental market. Many of these people will be struggling to keep a roof over their head let alone save enough for a deposit on a home.
|Five Year Forecast Borough by Borough|
|Kensington & Chelsea||25.6%|
|Hammersmith & Fulham||23.7%|
|Barking & Dagenham||16.6%|
Source: Savills Research
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