Frightening new stats reveal just how long the average Londoner will have to save for a deposit

Frightening new stats reveal just how long the average Londoner will have to save for a deposit

According to a new study by residential crowdfunding platform Property Partner, Londoners on an average annual salary of £34,320, hoping to get onto the property ladder, will have to save for a staggering 121 years before they have enough for the deposit needed for an average priced flat in the capital.

It now costs more than £457,000 for the average London flat. The deposit needed to buy the property, assuming the first-time-buyer secured a mortgage of four times the average London salary, would be a whopping £320,505.
If they were saving 10% of their net annual salary towards a deposit, it would take more than a century to have saved enough, without any financial help from the ‘bank of mum and dad’.  Putting aside 20% of net income a year would take 60 years and saving half their salary would still mean a 24-year wait.
Researchers at Property Partner analysed the average price of a flat in each of London’s 33 boroughs (including the City of London) and how long it would take a person to save up for a deposit assuming they secured a mortgage of four times the average London salary (£34,320).
The study looked at the homebuyer saving 10%, 20% and half of their net annual salary towards a deposit and the length of time they would have to wait before being able to afford a flat in different parts of the capital.
In the most expensive borough - Kensington and Chelsea – you would have to be Doctor Who to stand a chance of getting on the property ladder. It’s unlikely any first-time-buyer would choose to buy in Kensington and Chelsea, but if they did, it would take 389 years to save the £1m deposit needed. Even if you were able to save half your salary after tax, it would still be 78 years before you had enough cash to put down as a deposit for an averaged priced flat of £1.16 million.

The following table shows the London boroughs where it would take the most number of years to save the deposit for an average price flat:


Average price of flat

Deposit needed

Years saving 10% of net salary

Years saving 20% of net salary

Years saving 50% of net salary

Kensington and Chelsea












City of London


















Hammersmith and Fulham


















Richmond upon Thames












 Dan Gandesha, CEO and founder of Property Partner, said: “It’s staggering that if you have no help from family or friends, and you hope to buy on your own, it’s now almost impossible to afford anywhere in London. Even in the ten most affordable boroughs you’d need to be saving an ambitious 20% of your net annual salary to stand a chance of getting the deposit together before you reached middle age.
With record low interest rates and inflation rising, savers are seeing their money slowly erode. And if you’re also worried that property prices are  running away from you, there are of course alternative ways of investing and tracking the market. The housing market is broken and we need a major shift in thinking. The British obsession with owning their own home is now for many, at least in London, a pipe dream. More needs to be done to incentivise the private rental sector. In Germany, long-term renting is generally accepted and the cohort of long-term renters in the UK is growing, by force of circumstance.
Build-to-rent is one of many ideas to help solve the UK’s housing crisis, and the quicker we can provide good quality, professionally managed homes, for both the public and private lettings sector, the better.”

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