Will I be able to afford a property in London in the next 5 years?

It’s possible the outer areas seemingly better value will see London property values slide even further, how far who knows. Only recently we heard for the first time in the press it is no longer “Location, Location, Location” as it has been for as long as we can remember. Is this a trend that will continue? If so we may be able to buy a property in London in 5 Years-time.

Currently, first-time buyers are paying a record-breaking average of £405,000 to live in London. This is an incredible 71% rise since 2012. The average loan taken out by a first-time buyer in London is £317,253 and they scrape together an average deposit of almost £90,000 — despite interest rates at a record low.

This leads us to a very important question: Will you be able to afford a house in London in 5 years time?

If the London property market saw another 75% average price growth in the next 5 years, the average price of a property in London for a first-time buyer would be an eye watering £706,250! As ridiculous as this sounds, it could very much be the case due to the amount of people migrating to London which drives the average house price sky high.

Key Quote:

"If the London property market saw another 75% average price growth in the next 5 years, the average price of a property in London for a first-time buyer would be an eye watering £706,250."