Buying a dream home can take up to 27 years of saving
Some prospective homeowners need to save for 27 years before being able to afford to buy in their current are, data from MoneySuperMarket has revealed.
In Camden the average deposit figure is 56.6%, equating to saving for 27 years, the longest of any area in the UK.
Kensington and Chelsea is the most unaffordable place to live in the UK, with an average salaried couple needing to accrue a 52% deposit before buying in the area.
Kevin Mountford, banking expert at MoneySuperMarket, said: “As house prices continue to rise, the dream of owning a home becomes harder and harder to reach for so many people.
“For those who want to take their first steps onto the ladder, reaching the minimum deposit levels required causes serious financial strain and, as our analysis highlights, many might be priced out of their desired area.”
Outside of the capital, South Buckinghamshire, the Chilterns and Elmbridge feature in the top 20, all requiring deposits of over £200,000.
The data also revealed that in 75 local authorities, an average salaried couple would need to find more than 20% deposit to buy an average priced house.
Mountford added: “For those who want to maximise their chances of securing their dream home in their dream area, paying off debts is the best way to start, as existing borrowing will be taken into account by a lender when it comes to applying for, or extending, a mortgage.
“When comparing mortgages, it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account.”
MoneySuperMarket used their mortgage affordability calculator alongside ONS and Land Registry data.