London will become a city of renters by 2025, when only 40 per cent of Londoners will own a home, new research claims.
Only 26 per cent of “generation rent”, classified as young people from the age of 20 to 39, will own their house by 2025, according to the research by PricewaterhouseCoopers (PWC).
It shows that the situation has flipped since 2000, when 60 per cent of London’s population owned a house.
Richard Snook, senior economist at PwC, said people are increasingly being locked out of owning a home in London as demonstrated by a sharp rise in private rental and a drop in home ownership.
“High prices are making homes in the capital unaffordable to most and could undo a century long trend towards rising home ownership rates - in just 25 years the city has been transformed to one where rental is becoming the norm – especially for younger people,” he said.
London will be the worst affected, with a predicted rise of 24.4 per cent from 2000 to 2025 but renting will increase across the UK over the next ten years.
Scotland and the Northern regions of England are expected to see faster growth in private rentals than the South, excluding London.
The number of renters in the UK as a whole will increase by 14.5 per cent, according to the research.
Further research from the Association of Residential Lettings Agents found that first-time buyers who buy a house this year will have spent an average of £52,900 on rent.
Outrageous property deals in pictures
Outrageous property deals in pictures
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A luxury flat in London’s historic Admiralty Arch, which overlooks Buckingham Palace, could sell for up to £150 million. If sold for that price, the 15,000 sq ft apartment will become London's most expensive flat, topping One Hyde Park, a flat which sold for £140 million in 2014.The Grade I listed property boasts 12 bedrooms and 12 bathrooms
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A luxury home inside the US embassy complex has gone on sale for £2.5m. The property is said to be the most “protected home in Britain” and any visitor is asked to carry an identity card at all times. The complex has patrolling US marines, a 24-hour British police presence, checkpoints, anti-tanks blocks and CCTV.But potential buyers looking for a fortress should not get their hopes up as all the security will disappear once the US embassy moves to a new site in Nine Elms in 2017. The home, located at 4 Blackburne’s Mews near Grosvenor Square, dates back to 1732 and owes its nickname to its white façade, grand entrance and sweeping staircase as well as its proximity to the US embassy. It provides nearly 3,000 sq ft of living space and benefits from access to communal gardens.
3/14 First London luxury flats to contain their own private art gallery with prices going from £3.8m up to £7.7m
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5/14 Tiny London house that is just 10ft wide goes on market for £800,000
A tiny terraced house that measures no more than 10ft wide has gone on the market in south London for a staggering £800,000. The house, generally labelled "unique" by estate agent Foxtons, looks all the more unusual because it is sandwiched between two regular-sized homes. It doesn't even have a proper back door - images of the interior suggested renovators had sought to maximise the property's space by including a folding aperture to the similarly narrow back garden.
6/14 The Mayfair penthouse that sold for £30 million
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supplied by Estate agent Peter Wetherell
7/14 The dilapidated pre-fab 'shed' sold for nearly £1 million
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8/14 The starter home flats that went for a combined £60 million
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9/14 The longest lateral flat where H.G wells hosted a book club: yours for £3.65m
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10/14 Gatti House: the flats with celebrity links and private "pizza" lift that sold for a collective £16.5 million
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CBRE Residential and Beauchamp
11/14 London’s most expensive office
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14/14 The only property in London too expensive for the city’s super-rich property buyers
A 45 bed-room mansion near Hyde Park, previously owned by a Saudi Prince, received a private bid for £280 million. If accepted this would have made the property he most expensive single home ever to be sold in Britain. It was originally listed with an asking price of £300 million –more than double the price of the UK’s second most expensive home.
“Demand for housing in the UK has outstripped supply for more than two decades. Changing the outlook for generation rent will require us to build more houses than needed just to match population growth in order to make up the past shortfall between housing supply and growth in demand,” said David Snell, partner, PwC.
The findings fly in the face of the Government’s Help to Buy Scheme, which intended to increase the numbers of homeowners in the UK.Reuse content