Nick Millican: London Says Two Thirds of Renters Are Unable to Save to Buy a Home
The dream of owning a home seems farther away for many London-based renters than it ever has before. Now more than ever, the housing market is going through a lot of changes. According to real estate expert Nick Millican, about two-thirds or 66% of renters in London say that they have nothing left to save for a downpayment.
Overall, for a downpayment on a home of their own after they pay rent and cover their monthly expenses. They simply aren’t making enough to cover their rental costs and general costs of living with anything left to save. As Nick Millican recalls, the average home in London costs about 526,000 pounds, which is more than fourteen times the average salary of an individual worker in London.
This makes purchasing a home of one’s own out of reach for many London renters, even if they are able to muster up a few pounds to save each month towards the dream of owning their own home (Theorg).
Making it even harder to save enough money to afford one’s own home are the insane rent prices, which have reached an average of 2,567 pounds per month. Given that demand outstrips supplies for rental units right now, it’s making rental life even tougher for those who cannot afford to purchase their own home outright in London at this time. This, according to the expert Nick Millican.
All of these grim reports leave renters struggling to afford to save anything to purchase a home, even if they wish to do so someday. For Nick Millican, that means more residents are stuck in the endless cycle of renting, and never making any true progress towards increasing their own net worth and their family’s future!