London to become somewhere to work but not to live
High property prices in London are pushing out families and young working people who are staying in rented accommodation but want to buy their own homes. In order to jump on the property ladder though, they are having to move out of London. In fact, new studies have revealed that 63% of first time buyers are choosing to vacate London to buy their first houses, where property can be as much as £93,000 less on average.
According to recent research “the gap between where people can afford to rent and where they can afford to buy has widened every year since 2008”, this is supposedly due to the decrease in the property market in that year. London has the largest number of first time buyers moving away from their rental area, with the South East being a close second. Yorkshire and Humber and the North East and West of England had the lowest number of people moving away from where they rent properties.
In more expensive property territories, such as the South East and London, there is a vast difference between the increase of house prices and rental costs. In London, the price of homes increased 42% since 2012, compared to elevated rent prices of just 19%.
On the contrary, in the North, first time buyers tended to buy in similarly priced areas to where the previously rented due to lower house prices and an overall increase in affordability.
Aislinn Devlin, Pali Ltd
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