Rising numbers of prospective homebuyers in South London remain priced out of the market without any hope of getting onto the housing ladder, according to research from Allbricks. The research found that the average house price in South London is now £500,000, which is nearly double the average national average. This means that it is now impossible for many people to save for a deposit, let alone afford the monthly mortgage payments.
The report also found that the number of first-time buyers in South London has fallen by 40% in the past five years. This is a trend that is being seen across the UK, as the housing market becomes increasingly unaffordable. The rising cost of housing is having a significant impact on the lives of young people. Many are now forced to live with their parents or in shared accommodation, while others are being priced out of the area altogether.
In 2023, the average full-time worker will pay 7.8 times their annual earnings for a home, but it was 3.5 times in the 90s. This leads to the realisation that most of us are renting our lifestyles. When you do the calculations, most of them can’t afford to buy the homes they’re renting.
But is this a bad thing? Not really. Apart from the idyllic fantasy of owning your own home I don't see why someone in their 20s would want to tie themselves down with a mortgage as they are likely going to want to enjoy a bigger property fairly soon, or a different location. Having a workforce that is able to move quickly is a benefit for the economy. Perhaps this realisation will sink in and benefit the bounceback of the UK economy as a whole (providing the young workforce doesn't go overseas)!