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Eight decades of saving needed for deposit on Newham flat

PUBLISHED: 14:19 27 October 2016 | UPDATED: 14:19 27 October 2016

First-time buyers face decades of saving

First-time buyers face decades of saving

PA Wire/PA Images

If you're looking to buy a home in Newham, you'd better start saving now.

A new study has found that it would take more than eight decades for the average worker to save a deposit.

A buyer earning the average London salary of £34,320 would need to save 10 per cent of their net annual salary for 82 years to afford the £218,479 deposit required on an average £355,759 flat.

This falls to 16 years if a first time buyer is able to save 50pc of their salary, according to residential crowdfunding platform Property Partner.

Its founder, Dan Gandesha, said: “It’s staggering that if you have no help from family and you hope to buy, it’s now almost impossible.

“The housing market is broken. The British obsession with owning a home is a pipe dream for many in London. More needs to be done to incentivise the private rental sector.”

Across the capital, Londoners on an average annual salary will have to save 10pc of their earnings for 121 years before they have enough money for a deposit on an average priced flat.

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