New property statistics have revealed renting could be the new buying for Londoners.
Last year the average flat in London sold for £556,146, with terraced properties going for £666,852 on average and semi-detached homes fetching £654,761.
The surge in property values has resulted in hefty mortgage repayments, which are now 47 per cent more expensive than rent in the capital.
The research also revealed that it takes first-time buyers eight years to save for a deposit, with those looking to rent and save left with just £6,500 per year for themselves, and that’s before utility bills, travel costs and groceries.
Danny Nieberg at Property Rescue said, “It’s well reported just how difficult it is to get on the property ladder and these statistics only encourage young people to continue renting, despite government efforts to persuade them otherwise.
“Should couples be looking to save ahead of buying, now is the perfect time to do so with rent falling slightly and much less than current mortgage repayments. That won’t last forever and would-be buyers could be in a good position as the market begins to switch back around.”
History suggests this trend won’t be for the long term, with the property market very much working in peaks and troughs.
Currently, experts are suggesting house prices have reached their peak, meaning a downturn is inevitable in the coming years, making renting and saving in 2018, the perfect time to do so.