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