The housing crisis is the greatest challenge London faces. Years of not building enough new homes, including affordable housing, mean many young Londoners are now being priced out of the city they grew up in.
The latest English Housing Survey, the government's annual analysis of the housing market, reveals that the proportion of renters in the capital has hit 30%, up from 28.1% last year.
Lucian Cook, an analyst at Savills, said: “These figures demonstrate how London is at the sharp end of the housing crisis, with severely restricted access to home ownership putting increasing pressure on the private rented sector.”
Across Britain, the number of households that live in private rented homes has increased by 74% in the past 10 years, and they are spending on average 41% of their income on rent, which is significantly higher than the 19% of income that mortgaged households pay on housing costs.
These latest figures illustrate just how difficult the housing market is, particularly in London, according to Charles McDowell, Aldermore’s commercial director.
He said: “As usual, it is unfortunately first-time buyers who are in the firing line. Most worrying is the figure showing homeownership amongst those under the age of 45 has dropped by one million since 2010 – with those aged between 25 and 34 still the largest group to rent privately.
“Due to the changes to the buy-to-let market, we believe the cost of renting is likely to increase. This will ultimately affect the ability of renters and aspiring first-time buyers to save for a deposit, making the goal of homeownership even further out of reach. Unless something significant is done, this perpetual cycle will only continue.”