More rent than pay a mortgage in london

February 19, 2016

New figures just out show that renters in the capital outnumber homeowners for the first time in a more than a decade,  government data released yesterday shows that last year 898,000 London households were occupied by private renters.

The figures, which provide data from as far back as 2005, show that a decade ago just 405,000 households were renting, while 1,150,000 were paying mortgages.

“Generation Rent” as it has become known is for the greater part  made up of potential buyers who are trapped into paying high rents which give them little or no chance of ever saving up the deposit for a home of their own, or even if they do save a deposit  they have little chance of satisfying the earnings to value ratio required to obtain a mortgage due to spiralling house prices.

The number of households lived in by those with mortgages has sunk to 883,000, it just shows how the high house prices are affecting home ownership in London.

In a sign that ever increasing house prices are making it ever more difficult for generation rent, the number of households lived in by those with mortgages has sunk to 883,000.

The figures, which provide data from as far back as 2005, show that a decade ago just 405,000 households were renting, while 1,150,000 were paying mortgages.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

How to market to Estate Agents UK

The UK’s property sales and letting industry is quite sizable in both volume of work and those employed within. Some 25 million dwellings in England alone exist and there were estimated to be approximately 55,500 estate agents working in the United Kingdom as of the second quarter of 2024. Up and down the country, in…
Read More →
Letting Agent Talk

Preventative Measures to Reduce the Risk of Emergencies in a Rental Home

Ensuring that a rental home is safe and well-maintained is essential for both landlords and tenants. Emergencies in a rental property can lead to significant stress, financial loss, and potential damage. However, by implementing preventative measures, landlords and tenants alike can reduce the risk of emergencies and create a safer living environment. This guide provides…
Read More →
Estate Agent Talk

Understanding the Metrics Used by Estate Agents to Determine Your Home’s Worth

Determining the value of a property can sometimes feel like a complex process shrouded in mystery. However, understanding the various metrics and considerations that estate agents use to assess your home’s worth can demystify the process and empower you as a homeowner. This blog will provide a comprehensive guide to the key factors estate agents…
Read More →
Breaking News

Breaking Property News 15/11/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Digital transformation of real estate drives profitability Press Release – London 14th November 2024 – Following the October budget, estate agents across the UK are seeking new ways to adapt to an evolving property market. Rising costs and shifting buyer expectations have driven a need…
Read More →
Estate Agent Talk

Labour’s Vision for Homeowners and Renters: Key Changes to Expect

The UK housing market continues to be a complex and often challenging landscape for both homeowners and renters. Labour’s vision for housing reform aims to address longstanding issues in affordability, security, and sustainability, setting out a series of policy proposals that could reshape the property market. Whether you are a homeowner, a renter, or an…
Read More →
Letting Agent Talk

The pros and cons of renting to students: is it the right choice for you?

Student properties are no different in term of quality and facilities than any other type of private rental. And although landlords may have to spend a fair amount on setting up and properly maintaining student lets, they can also charge a good market rent. To help you decide whether letting to students might be worthwhile…
Read More →