London renters have little chance of getting on the housing ladder, finds new research, as many younger tenants struggle financially after the long months of Covid.
Affordable housing developer Pocket Living says that while 63% believe owning a home would improve their quality of life, just 22% are currently able to save money for a deposit.
Its poll of more than a thousand 25-45 year olds reveals that owning a home is a key aspiration for 73% of renters surveyed, yet the capital’s property prices remain the biggest obstacle for more than half (51%).
Another 30% can’t afford a mortgage while 27% report they are struggling to raise a deposit.
With many London renters either not satisfied with their living conditions – less than half (47%) say they have adequate space – Pocket Living’s research suggests that London could potentially lose 15% of 25-45 year olds in the next year, with 12% of all age groups considering buying outside of the city, despite 62% of respondents reporting they would be reluctant to leave.
Marc Vlessing (pictured), its CEO, says first-time buyers have suffered in silence during the COVID-19 pandemic.
“Almost all of them maintain a desire to own their own homes in London despite being thwarted by a range of obstacles, from affordability to instability of work, with the city continuing to be a magnet for those who enjoy the balance it provides those looking to live independently, whilst still being surrounded by a buzzing and vibrant community,” says Vlessing.
Pocket Living hopes Michael Gove – new Secretary of State for Levelling Up, Housing and Communities – will acknowledge that there needs to be a greater supply of housing, which the First Homes policy alone won’t achieve.