Growing divide for London first-time buyers


Growing divide for London first-time buyers

The 3rd RBS Ability to Buy Index for first-time buyers (PDF 500KB) shows:

  • Londoners have to save nearly twice as long for a deposit as rest of UK, with higher rents taking 75% of earnings after essentials compared to 50% for the UK
  • Scotland is the most affordable part of the UK to buy a first home
  • Average mortgage payments fell by £14 a month compared to a year ago, but inflation has decreased affordability overall

"It's becoming much tougher for first time buyers to get a foot on the London property ladder, in part driven by the high cost of rents in the capital. The average Londoner trying to save for their first home has to spend around three quarters of their income on rent, leaving precious little for savings. This compares to around half for the rest of the UK, making it much harder to save that crucial first deposit if you live in London. As a result London first time buyers take an average of more than four years to save a deposit, compared to around 3 years for the UK as a whole, and two and a half for Scotland."

Fionnuala Earley, RBS Group UK Consumer Economist

Tagged

Housing

Latest news

RBS to help 2.5 million people each year to be more financially capable

RBS has today committed to helping 2.5 million people in the UK each year to improve their financial capability.

RBS to increase lending to sustainable energy sector following £1.1bn securitisation of loans to UK sustainable energy market

RBS has executed a £1.1bn securitisation deal with Macquarie Infrastructure Debt Investment Solutions (MIDIS), which will allow the bank to recycle capital and increase lending to the sustainable or renewable energy sectors.

RBS launches £1 billion Female Entrepreneurship Funding and announces targets to help create at least 50k new businesses by 2023

RBS has today announced a new £1 billion in funding through NatWest to support female entrepreneurs in the UK to scale and grow – the largest intervention by a UK lender focused specifically on female-led businesses.

Set Tab for lightbox