Carry On Renting - it takes 46 years for buyers to save for a London deposit

Future demand for rental property looks secure if Hamptons International's latest research is accurate - it says a typical single Londoner hoping to buy their first home would have to save for no less than 46 years to afford a 15 per cent deposit.

Using data taken from the third quarter of last year, Hamptons says a 15 per cent deposit on the average home across the UK as a whole would take 13 and a half years to save, if the buyer was a single first-timer not getting assistance from their family. 

Looking at regional breakdowns outside London, the North East of England continues to be the quickest place to save for a deposit with single buyers facing a wait of just under eight years.

Pooling resources with a partner or friend cuts the time to save significantly. It takes an average couple working full-time, some three and a half years to save a deposit for a home across the UK; in London it is eight years and only two in the North East.

The Help to Buy ISA scheme will also help reduce the time it takes to save for a deposit. The government bonus of up to £3,000 will cut the time a single first-time buyer has to save for by between nine and 12 months says Hamptons.

The introduction of the Lifetime ISA announced in the Budget will help savers even more. First-time buyers in England and Wales will be able to save almost three years faster using the ISA. In London, they’ll be able to save 19 years faster.

Even so, the saving periods are enormous: Hamptons assumes households save some 22 per cent of the income after spending on accommodation, heating and other utilities, and food.