The number of London renters continues to rise

Recent developments in the property market have led to a large proportion of young professionals, couples and families resigning themselves to long term renting following an 18 month period of rapid house price growth. A survey undertaken by Halifax revealed that the number of would-be buyers saving for a deposit fell six percentage points in 2014, with only 43% of people currently setting aside part of their monthly income to purchase a house.

Wage growth remains slow, criteria for lending becomes stricter and it is factors such as these that deter first time buyers. The research highlights the growing divide between those that want to embark on the ladder and those that have written off their prospects. The survey involved 40,000 people aged 20 to 45, and found the three main barriers to be low income, property prices and deposit size. The average amount that non-homeowners are able to save towards a deposit has only increased marginally over the last two years to £33.35 but this figure would in fact need to double to offer a realistic chance of buying. The length of time it takes to save a deposit has also increased from an average of 3.6 years to 5.3 years.

The long term plans of young professionals and young families have also shifted in recent years. People have become less concerned with securing tangible assets and security in the form of property. An increasing number of people are focused on keeping their options open and not making long term financial commitments. Additionally, location preferences have changed in recent times with people abandoning the idea of suburban life and embracing the idea of raising their families in the city. People are seeking high quality accommodation in areas that offer a convenient commute and a short distance away from everything the capital city has to offer.

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