Single Londoners face an average 56 years to save up enough to pay a deposit, according to new Generation Rent analysis of the current housing market.
This means single Londoners are at 49 years disadvantage to couples saving.
A couple both earning the average salary in London and saving 20% of their income after taxes and rent on the average one-bed home would have enough for a deposit of £66,401 on the average first-time buyer home after 6.6 years.
But because a single average earner can only borrow half the mortgage that a couple could, the deposit needed rises to a whopping £275,000 on a £484,000 home.
Generation Rent’s analysis is based on the assumption the average renter would save 20% of their income left over after tax, student loan repayments and rent. The deposit needed is either the difference between the house price and 4.5 times the gross salary (maximum mortgage typically offered), or 10% of the price if the maximum mortgage is higher than the house price.
Generation Rent then carried this analysis out across the UK. Assuming they are paying the same rent on a one-bed as a single person, it would take couples 2.6 years to save the deposit nationally, 1.4 years in the North East and 2.9 years in the South East.
In England the average time for a single earner to save has fallen from 22 years in 2024 and 31.3 years in 2022 — but this is up from 16.4 years in 2014, with house prices having risen by about 50% in that time.
While rents have risen by 25% since 2022, faster than net income at 19%, house prices have been fairly flat, allowing incomes to start catching up.
As such, Generation Rent is urging the government to do more than focusing on housing supply with the renters’ advocacy group calling for attention on the dynamics behind the economics of rental growth.
“Building more homes will slow the rise of rents and prices, reducing the time needed to save,” read the analysis commentary from Generation Rent.
“But to really make a difference, the government should look again at the advantages investors have, such as interest-only mortgages, that have allowed them to outbid first time buyers.
“Giving Metro Mayors the power to limit rent increases in cities like London would also help give renters some breathing space to start saving.”
