Deposits 'goalposts' are shifting further away from first-time buyers
The spiralling cost of deposits for first-time buyers is making it far harder to get on to the property ladder.
According to the Independent, the price of deposits has risen by 124 per cent in the last few years. With house prices dipping by ten per cent since 2007, the cost of a deposit has put extra strain on annual incomes.
In 2000, first-time buyers would need to save around 16 per cent of their annual income but that figure now stands at 64 per cent of annual income.
Bob Pannell, head of research for the Council of Mortgage Lenders, told the Independent that mortgage lenders are more "risk-averse", which is directly affecting potential buyers.
"While prices may have recovered, deposits are now stuck at 25 per cent, so the goalposts are shifting ever further away from would-be first-time buyers," he said.
Whilst deposits are becoming more out of reach, people may consider looking for property to rent in the London borough of Hackney, or elsewhere in the capital, rather than buying a home.
By Ben Carter
Published 16th March, 2010
© 2010 Estates IT Limited
London Rental Property News By London Borough / Category
Latest London Property News Headlines
Southwark to get Dickens statue
People in flats to rent in Southwark may be pleased to learn that the local council plans to install a commemorative statue installed between Blackfriars Road and Union Street to celebrate the English novelist Charles Dickens' 200th birthday.
Read Article ... Published on 9th February, 2012
Bexley highlights progress on local Olympic planning
People occupying flats to rent in Bexley have been assured that the local council is making good progress in getting ready for the forthcoming 2012 Olympic Games in London.
Read Article ... Published on 8th February, 2012
Colindale's Grahame Park area in line for regeneration funding
New flats to rent in Colindale could be created if Barnet Council succeeds in efforts to obtain new funding for the regeneration of Grahame Park.
Read Article ... Published on 8th February, 2012
Council announces new parking plans for Fulham
People seeking flats to rent in Fulham will be able to benefit from expanded parking facilities thanks to a new package of measures from the local authority.
Read Article ... Published on 7th February, 2012
Bromley Council approves funding for Biggin Hill Heritage Centre
People occupying flats to rent in Bromley will welcome news that £64,000 has been allocated for the development of the new Biggin Hill Heritage Centre.
Read Article ... Published on 7th February, 2012
Harrow unveils new budget plans to modernise local services
Those occupying flats to rent in Harrow have been promised that local services will be protected or improved under new plans from the regional council.
Read Article ... Published on 6th February, 2012
Borehamwood park to compete for Green Flag Award
People living in flats to rent in Borehamwood will see their local Aberford Park compete for a Green Flag Award once again this summer.
Read Article ... Published on 6th February, 2012
Plans for new Highbury Roundhouse developments outlined
People in flats to rent in Highbury have seen plans to redevelop the current site of the Highbury Roundhouse community centre take another step forward.
Read Article ... Published on 3rd February, 2012
Improvement programme to be launched for Ruislip Manor shops
Those occupying flats to rent in Ruislip are set to benefit from a new scheme that will improve the look of shops in the Ruislip Manor area.
Read Article ... Published on 3rd February, 2012
South Kensington's revamped Exhibition Road officially opens
Demand for flats to rent in South Kensington could be set to rise following the official opening of the revamped and redeveloped Exhibition Road area.
Read Article ... Published on 2nd February, 2012
Many young people may look for a property to rent in London, or elsewhere in the UK, after a report highlighted the difficulties for first-time buyers