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For many, the only ‘viable’ renting option for prospective buyers is to house share

Affordability is a serious problem, particularly in London, and this puts people wishing to buy their first property under a great deal of pressure and leaves them facing some tough decisions when trying to raise a deposit that go beyond simply cutting back on little luxuries

High property prices and affordability constraints means that many people living in the capital have little alternative but to rent, but those wishing to get a foot on the ladder can typically do so in less than five years by opting to rent a room in a house share over renting their own place, according to a new study.

The research from ideal flatmate looked at how much the average tenant could save in each borough by opting for a single room instead of renting a one-bedroom apartment of their own, based on the average cost of each across the capital.

The room share platform then analysed the required mortgage deposit at 10% of the average first-time buyer house price in each borough, before working out how many years it would take with the savings from property sharing to reach this deposit.

Across London the average cost of a one-bedroom property is £1,300 a month, while a room will set you back just £600, resulting in a saving of £700 a month, or £8,400 a year, with the average first-time buyer property price in London currently stood at £412,679, which means that it would take 4.9 years on average to save the £41,267 - 10% mortgage deposit – required.

Hounslow was identified as the most cost-effective borough to rent a room, which costs £596 a month on average. The average one-bedroom flat in comparison costs £1,300 to rent.

Enfield, Ealing, Tower Hamlets and Newham all provided a large enough saving to ensure tenants could save a mortgage deposit to live in the borough in less than five years.

At the other end of the table it would take tenants in Kensington and Chelsea 10.4 years to save a deposit with their room rental savings as a result of the extreme property prices in the borough.

Tom Gatzen, co-founder of ideal flatmate, said: “The financial barrier of transitioning from a tenant to a homeowner in London is huge and when coupled with a lack of suitable rental stock available, it’s currently one of the biggest factors putting a strain on the capital’s rental market.

“We completely understand that for many, the only viable option when living in the capital is to rent a room in a house or flat share already and there’s a very good chance that house prices in London will be higher than they are now in four to five years’ time. 

“However, while we know the idea of saving for a mortgage deposit seems impossible, we wanted to get people thinking outside the box on ways they can make a lifestyle adjustment in order to start tackling this mammoth task, without compromising the area in which they live or having to forsake avocado for breakfast.”

Borough Average Rent (1 bed) Single Room Rent Monthly Saving Yearly Saving FTB House Price Mortgage Deposit Required @ 10% Years of Saving Required
Hounslow

£1,300

£596

£704

£8,448

£353,076

£35,308

4.2

Enfield

£1,100

£442

£658

£7,896

£352,056

£35,206

4.5

Ealing

£1,200

£442

£758

£9,096

£426,620

£42,662

4.7

Tower Hamlets

£1,430

£693

£737

£8,844

£415,189

£41,519

4.7

Newham

£1,200

£592

£608

£7,296

£342,734

£34,273

4.7

Brent

£1,250

£592

£658

£7,896

£406,390

£40,639

5.1

Southwark

£1,300

£588

£712

£8,544

£446,372

£44,637

5.2

Hackney

£1,495

£667

£828

£9,936

£523,280

£52,328

5.3

Lambeth

£1,300

£596

£704

£8,448

£453,022

£45,302

5.4

Lewisham

£1,100

£550

£550

£6,600

£366,680

£36,668

5.6

Kingston

£1,100

£492

£608

£7,296

£409,397

£40,940

5.6

Haringey

£1,250

£567

£683

£8,196

£478,903

£47,890

5.8

Greenwich

£1,150

£650

£500

£6,000

£352,939

£35,294

5.9

Islington

£1,517

£701

£816

£9,792

£582,156

£58,216

5.9

Redbridge

£990

£476

£514

£6,168

£370,373

£37,037

6.0

Croydon

£900

£492

£408

£4,896

£302,758

£30,276

6.2

Barnet

£1,150

£548

£602

£7,224

£446,786

£44,679

6.2

Hillingdon

£1,000

£542

£458

£5,496

£341,413

£34,141

6.2

Harrow

£1,050

£539

£511

£6,132

£386,293

£38,629

6.3

Waltham Forest

£1,075

£523

£552

£6,624

£419,083

£41,908

6.3

Westminster

£1,842

£715

£1,127

£13,524

£895,636

£89,564

6.6

Wandsworth

£1,365

£713

£652

£7,824

£521,095

£52,110

6.7

Merton

£1,200

£642

£558

£6,696

£447,387

£44,739

6.7

Barking and Dagenham

£950

£592

£358

£4,296

£287,108

£28,711

6.7

Bromley

£950

£527

£423

£5,076

£353,448

£35,345

7.0

Sutton

£925

£550

£375

£4,500

£320,221

£32,022

7.1

Richmond

£1,200

£614

£586

£7,032

£528,510

£52,851

7.5

Camden

£1,582

£802

£780

£9,360

£706,879

£70,688

7.6

Havering

£875

£549

£326

£3,912

£312,903

£31,290

8.0

Hammersmith and Fulham

£1,400

£801

£599

£7,188

£641,542

£64,154

8.9

Bexley

£800

£550

£250

£3,000

£310,631

£31,063

10.4

Kensington and Chelsea

£1,950

£980

£970

£11,640

£1,207,159

£120,716

10.4

             
London

£1,300

£600

£700

£8,400

£412,679

£41,268

4.9

  • icon

    What this article doesn’t discuss is how much you’d have to potentially earn to buy even the cheapest London property after 5 years of saving and living in the cheapest room you can find. I’d be interested to know stats on how many high earners choose to live in say tower Hamlets whilst saving for a deposit and how many people manage to save and buy their London property (without help from mum and dad).

  • Paul Barrett

    The question is why should anyone believe they have the right to afford to be where they want to be!!!!!!???
    Surely anyone has to reside where they can afford or choose to afford to be!!!???
    NOBODY has the right to reside where they wish to be.
    So unfortunately many aspirant homeowners will have to accept that their economic circumstances are insufficient to meet their aspirations.
    The reasons for such circumstances are irrelevant.
    We are where we are!
    Those who aspire to be residential homeowners in London will have to accept that London is beyond their affordability.

    So they will have to buy outside London and accept they will be paying rail fares as a commuter for many years to come!!!
    You couldn't pay me to live in Tower Hamlets!!!!!
    Not being able to afford to live there is a blessing in disguise as many will eventually realise!!!
    Commuters should not be concerned with geographical distance from London; it is more the travelling time by train.
    Car journeys are hours long.
    A 45 min journey by train gets you to some very affordable areas outside of London.
    For those who wish to reside near the 'bright lights' they will have to accept that renting is the ONLY option in a small or shared property.
    As in any domestic circumstances it is down to the individual how they choose to arrange their lifestyles.

  • icon

    I agree Paul, I spoke to one person who moaned they couldn’t get a mortgage to by a property local to them. It happened this person refused to even consider moving to an alternative location. His attitude was I like Fulham and shouldn’t have to move elsewhere to buy. When I asked his job I almost fell over, he was a cleaner. I am a full time rail engineer, own a small portfolio bring in£69k+ and i could not afford that area so what realistic hope did he have on a cleaners wage. His head was so buried in the sand reality didn’t seem to exist

    Paul Barrett

    Yep there are some very immature people around these days.
    They DON'T seem grounded in reality like we were and are.
    It is almost as though they have a child-like mentality.
    I wouldn't even contemplate being able to afford to reside in Fulham!!
    All I can say is this cleaner must be on about £40k per year!!!!!!!
    I simply don't understand where these idiots get their sense of entitlement from!!
    I never had it and realised that my coat would always be cut according to the cloth!
    I simply can't even comprehend having a mindset like that of your cleaner.
    It is simply alien to everything I have ever known.
    Perhaps we are now society's deviants!?
    To expect entitlement to everything no matter how unrealistic seems to be the the way people are supposed to be.
    The trouble is these spoilt brats are being pandered to by this Govt and that is why we have policies such as S24 being imposed on us.
    So like it or not this selfish childlike GR is affecting those of us who have realistic outlooks.
    I think the rot set in around 1997 when Blair got in and promised the little darlings everything if only they went to university.
    Those assertions have never worked out and as such this GR lot are resentful that they haven't got it all yet.
    They were promised weren't they!?
    Get a degree in some mickey mouse subject and you too can have a penthouse in the heart of London!
    It is enough to make you weep at the naivety of these idiots.
    Trouble is these idiots are putting us out of business.
    I DON'T see any of this changing anytime soon.
    This Govt is hell- bent on cosying up to GR in an attempt to ensure they vote Tory.
    Ideologically the Tories should realise by now that GR is findamentally opposed to the Tory way.
    So why the Tories are attempting to pander to the GR vote beats me.

     
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