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Aspiring homeowners in London need an average of 26 years to save a deposit

Up from 15 years just a decade ago

​Aspiring homeowners in London need an average of 26 years to save a deposit, up from 15 years just a decade ago, according to new research from JLL Residential.

As property professionals gather this week for MIPIM, JLL's findings indicate that those wishing to get on housing ladder in London require double the average time saving for a deposit compared with other European capital cities.

JLL's research illustrates the ever-growing affordability gap facing aspiring home owners in the UK Capital. While nominal wage growth for those who live in London has increased by 15% since 2005, the average price of London property has almost doubled, increasing by 92%.

This means it will now take 26 years to save a 10% deposit for a Central London one bedroom flat, based on a typical savings rate of 10% individual disposable income per month.

Of 15 capital cities analysed by JLL, 10 would require less than half the time to save a 10% housing deposit in comparison to London. The remaining four include Paris, Rome, Vienna and Stockholm. Stockholm itself has experienced significant capital growth in residential markets in recent years. Aspiring buyers in the Swedish capital city would, on average, still spend 12 fewer years saving for a housing deposit. Paris requires the second longest period on average to save for a deposit at just under 22 years.

Philip Wedge-Bernal Residential Research EMEA Analyst at JLL comments: "The past decade has increasingly pushed the idea of home-ownership out of reach for many individuals in London.

"In 2006, London was considerably more affordable for aspiring buyers and in relative terms cheaper than both Paris and Rome by today's comparison."

"The global recession has undoubtedly played a significant role in this trend, with domestic wages since the worldwide crash failing to keep pace with significant house price growth."

"London has for many years attracted the world's best and brightest from all walks of life. However this ever-growing affordability gap could soon jeopardise London's status as the de-facto capital of the world, unless new homes are built in the Capital to combat this issue. The best and brightest may otherwise be tempted by the alternatives offered by other major European cities."

An accompanying infographic, The real cost of housing across Europe, can be viewed here​.