Renting the only option for many overly-optimistic Londoners |
07 2008 |
| An increasing number of Londoners are staying in the rental sector for longer as house prices have risen at a higher rate than they originally anticipated, it has been revealed. Research carried out by the Notting Hill Home Ownership housing association (NHHO) found that, while 63 per cent of those questioned thought it likely that they would own their own property within three years, the current market prices suggest this is largely an unrealistic dream. Figures put forward by the NHHO show that the average property price in the capital now stands at £371,000, in contrast to the average annual income of £24,500. The organisation's president Mark Vaughan, commented: "When the borrowing capacity of the capital's home-seeking public is set against average house prices, the financial shortfall is alarming, and proves that optimism among buyers does not connect with reality. "This chasm between average savings and house prices shows no immediate signs of being bridged, meaning that for the majority of London's homeseekers full property ownership remains an unattainable goal." The related report in the Daily Telegraph then cited the recent UK Housing Review compiled by the University of York, which concluded that "private renting has become far more competitive as an option compared to the cost of buying".  |
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