Member Article

London's overcooked housing market sees Generation Rent facing 59-year slog for a deposit

The scale of London’s current housing crisis has been underlined by new research that has revealed the uphill struggle so-called ‘Generation Rent’ face in scratching enough money to put down on a deposit.

Utilising a YouGov survey of the saving habits of London renters aged 18-40, new innovation hub Studio B cross-referenced property price data from Zoopla to work out how long it would take for the average saver to amass a 25% deposit across various London neighbourhoods.

The data revealed that on average, Generation Rent is looking at an average 59-year wait to save up the necessary deposit to buy a flat in London at current savings rates, with that figure varying widely between the capital’s most and least-fashionable areas.

For Kensington and Chelsea, which remains the capital’s most expensive despite a recent contraction in property prices, prospective buyers would have to wait up to 193 years before they had saved enough cash to plonk down a deposit.

At the other end of the scale, Londoners face a comparatively reasonable 26-year wait to scrape together a 25% deposit for a flat in Barking and Dagenham, despite the survey revealing that the average age people expect to be able to buy a house is 37.

Most alarmingly, the YouGov poll also found that 30% of those surveyed were unable to put any money aside at all each month, with 59% citing high rents as the single biggest barrier to saving.

The figures come ahead of Project B’s official launch later this month. The initiative has been created by Clydesdale and Yorkshire Bank to find innovative solutions to society’s current banking and financial problems, centered around a central London store opening on Kensington High Street on 27 April.

In light of the findings and ahead of its big launch, Helen Page, Group Innovation and Marketing Director, commented: “We know how difficult it can be for younger generations starting out on their own.

“The whole point of Studio B is to work with the customers of tomorrow to find the most innovative solutions to the problems they face. Studio B will help customers build a better relationship with their money.”

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