Living in London is expensive.
That’s just a fact that we all know to be true and accept as part of life. It is also the biggest factor pushing first time buyers into areas outside of London when settling down permanently.
Young people look to other areas for housing
Research has been published which shows that:
- Over 40% of London-based 25-34-year-olds are considering moving out of the capital when they purchase their first home
- Of those who responded that they would look elsewhere, and discounting those who responded that they had not thought about buying a home yet, 65% cited the cost of living in London as their main reason for buying property elsewhere
- Only 6% of respondents (17% of those who said they would leave London) cited a better quality of life as the reason for wanting to leave
- Most people being forced to look in other areas for housing are not doing so through personal choice or because of negative feelings toward the city – it is purely motivated by financial viability
- 10% of those surveyed said that they would be remaining in the city due to their love of the area. This shows that affordability is not always the most important factor when it comes to the location of your first home.
(Source: Online Mortgage Adviser)
Why is London so expensive?
Although house prices have fallen for the first time in eight years during 2017, the cost of living in London is still higher than all other areas of England.
The average house price in London, between July and September 2017 was £471,761. This is a big jump when compared to the average house price for England as a whole at £261,456. While London was the only region to see a fall in average property prices, it is still at a much higher level than the rest of the country.
The official living wage in London has reached £9.74 per hour, but the reality facing many employees in the city is that the National Minimum Wage is still in effect and they still earn the same pay as people doing the same job in other areas of the UK. With income remaining the same across all cities and such inflated living costs, it is not surprising that such a high number of young Londoners are contemplating moving to more affordable areas.
Making London Accessible
There’s nothing wrong with wanting to stay in an area you love, or even move to a city that you dream about. Yes, London is pricier than other areas in the UK, but, given the amount of people currently living there (8.78 million at the last count), it must be possible. If London was completely off-limits, that number would be much, much lower.
If you lie awake at night, aspiring to make the Big Smoke home, here are our top tips for reaching that goal:
- Raid the bank of Mum and Dad: If they’re willing to help, it can come in handy to have a little bit of additional support, but make sure that you have a plan in place to survive when their generosity runs out
- Make a saving plan: Working out how much you need to set up your life in the capital will help you to set realistic savings goals and work toward them. It is not going to mean that you can immediately start packing your belongings, but it will cement your dreams and put things into perspective
- Take advantage of the wealth of schemes available. Take a look at our First Time Buyer Guide here for more details
At London Money, we know the London market inside-out. So, if you’re struggling to bring your dream of owning your own home in the city to reality, why not get in touch and let our experience unlock more options?