‘Owning a home is a key aspiration in life’ said 73% of the renters Pocket Living polled in our Autumn 2021 research. It is a firm reminder that home ownership is a key goal for many people in London despite the hurdles placed in their way, before, during and after the covid pandemic.
The research explored the attitudes of 1,000 Londoners aged between 25 to 45, 38% of respondents owned their home and 26% did so with a mortgage (with 70% of these homeowners having mortgage). This shows the prominence of the Bank of Mum & Dad, with equity pouring into the housing market – for those who have financial support.
While renters look on enviously, 72% of the 25 to 45 year-old Londoners who have bought a home claim to have more stability, 71% a better quality of life and over half claim (56%) to be financially better off.
Is London still an attractive place to live?
According to estate agents Hamptons, Londoners bought 60,000 homes outside the capital in the first half of 2021 – and many of those people were first-time buyers. This was the highest half-year figure since Hamptons’ records began in 2006 – and first-time buyers made up a quarter of those buying outside the M25.
According to our research, London could potentially lose 15% of 25 to 45 year-olds in the next 12 months, with 12% overall considering buying outside of the city. This equates to approximately half a million 25 to 45 year-olds likely to leave the city in the next year.
However, there is much love for the Capital amongst generation rent. Almost two thirds (62%) agreed with the statement: “I really don’t want to move outside London to afford a home because I would have to sacrifice too much to do so”.
What this means for policy at a Borough level
There was strong support for a further affordable housing drive from the Mayor and the Boroughs. Renters underlined this with 76% telling us that more affordable tenures in the Capital will ensure vibrancy of London.
The challenge is to ensure policy supports affordable homeownership whilst safeguarding other affordable tenures. London has many assets but its people are undoubtedly a key element of what makes the city great. Giving the young a chance to own must be a clear and coherent part of this.
The Mayoral fast track which promotes majority tenure affordable is one way to go. However, to date only one Borough out of 33 is according to this with the majority taking a prescriptive approach which is undermining the ability of Housing Associations and other providers to bring forward intermediate housing.
London must not become a binary housing choice between those who rent and those who own but to avoid this imaginative and pragmatic policy and leadership is required and it needs to be sustained.
