Generation Rent could face a 59-year-long wait to save up for a deposit for a house, Property Reporter reveals.
And it gets even worse. Looking at London’s most sought-after and expensive areas, Kensington and Chelsea, it would take millennials up to 193 years to save enough coin to cover the 25% deposit on a flat.
The continuing rise of Generation Rent and its best friend: the Private Rented Sector
The research commissioned by Clydesdale and Yorkshire Banks’ Studio B analysed current saving patterns and hinted at the fact the most Londoners would only be able to buy their home when they’re in their seventies. Effectively, they would be buying their retirement homes.
In London’s cheapest boroughs, Barking and Dagenham, it would take the average saver about 26 years to secure the 25% deposit needed to secure a home.
Currently, 30% of Londoners aged 18-40 years are unable to put any money aside on a monthly basis, meaning they haven’t even been able to start saving for the deposit yet.
Rent is named by 59% as the major barrier to saving enough money to put down a deposit and 23% never expect to own a home in their lifetime.
Additionally, a different research paper was comparing the financial health of renters to those with a mortgage. The study by Momentum UK found that the average renter was in a far worse financial state than someone with a mortgage.
Britain’s renters spend less time on holidays, save less money and are more likely to be forced to make cutbacks.
Britain’s Generation Rent feels let down by high street agents
According to the research, 31% of renters have less than £100 in savings, compared to only 15% out of those with a mortgage. And whilst only 16% of renters fell their current income is sufficient, more than twice as many (37%) agree with the same statement.
Dominiwskc Baliszei, Director of Consumer Strategy for Momentum UK, said:
“The average private renter loses around half of their pay cheque on rent at the beginning of each month, and for those living in London, it can be even higher. This not only limits their ability to save, but also means they have to cut back on expenses such as gym memberships, holidays and socialising just to get by.”
