It would take the average Tower Hamlets worker 123 years to save the deposit for a home according to research by an east London property company.
And you would need to be a time-traveller akin to Doctor Who to buy a property in many areas of the capital without help from the ‘bank of mum and dad’.
Residential crowdfunding platform Property Partner analysed figures from the Office For National Statistics and compared an average annual salary of £34,320 to prices for a flat in all 33 of the London boroughs.
In Tower Hamlets an average starter home would cost you £464,511. Assuming a first-time-buyer secured a mortgage of four times their earnings and saved 10% of their annual take-home pay, it would take 123.46 years to save the £327,231 deposit needed. Even saving 50% of your salary it would still take 24.69 years
In Hackney, where an average flat costs £522,130, it would take between 29 to 145 years, In Newham it would take 16 to 82 years to buy a £355,759 property.
Greenwich is your best bet in this area of London. It would take 14 to 73 years to save the £194,855 deposit needed for a flat costing £332,135.
Overall Barking and Dagenham is the cheapest borough with an average flat costing £219,563 meaning it would take a more achievable six to 31 years to save a £83,283 deposit.
It’s unlikely any first-time-buyer would choose to buy in Kensington and Chelsea, the most expensive borough, but if they did, it would take 389 years to save the £1million deposit needed. Even if you were able to save half your salary after tax, it would still be 78 years before you had enough cash to put down as a deposit for an averaged priced flat of £1.16 million.
CEO and founder of Property Partner Dan Gandesha said: “It’s staggering that if you have no help from family or friends, and you hope to buy on your own, it’s now almost impossible to afford anywhere in London.
“Even in the ten most affordable boroughs you’d need to be saving an ambitious 20% of your net annual salary to stand a chance of getting the deposit together before you reached middle age.”
He believes an increase in built-to-rent could help ease the housing crisis and added: “The housing market is broken and we need a major shift in thinking.
“The British obsession with owning their own home is now for many, at least in London, a pipe dream. More needs to be done to incentivise the private rental sector.”
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