How to get your foot on the property ladder of London

Many young Londoners have a dying dream of purchasing their first home. MillenniumSpending habits that prevent you from accumulating a deposit equal to five percent or more of your property’s value.

Simon Gerrard, managing Director of Martin Gerrard Real Estate Agents, and former president of National Association of Real Estate Agents, states that Netflix subscriptions or excessive consumption of avocado on toast or Pret are not the problem.

“It’s really awful. Figures published in late 2021 show that where homeownership among 25- to 34-year-olds was 51 percent in 1989, by 2019 the number has dropped to 28 percent.”

This is not surprising given current real estate prices.

This week ONS Figures revealed that the average home price in the UK is now £295,000, while it is even more expensive in London at £542,000.

Gerrard says that the rising cost of real estate is due to a shortage of homes. This will likely prevent any sharp drops in real estate prices. “Thanks to the failure of successive governments to build homes, young people are challenged not only to find a place to live, but also to pay for it.”

How to climb the property ladder in London

“For many young Londoners looking to get a foot on the ladder, it is by no means impossible,” Gerrard says.

Actually, it’s a great way to think: Even if it means walking a little lower, it’s a good idea not to stop moving forward.

Think with your heart and head

While home price growth may be slowing, it is unlikely that the market will see the kind if decline that would make “Instragrammable” property a reality. Given prices that have been tracked upward for decades, buying a property that you’ve been willing to live in for five or six years—even if it’s not your first choice—will not only provide you with a home, but also a solid long-term investment. Take advantage of the market turmoil while micro-budget ripples are still being felt.”

You should think beyond your chosen area

Gerard encourages homebuyers not to be too optimistic and to be smart about the areas they are looking at.

It may seem absurd to Londoners now, but Crouch End used to be Muswell Hill’s less affluent cousin. The decision to move up the ladder in this north London suburb paid off. Today’s buyers should look for areas that have potential in light of the ever-increasing prices of real estate. Again, there are tricks.

He says that the area’s “come up-and-running” is often indicated by the presence of schools and excellent transportation links. Finding an area with less amenities (and schools) will result in a lower initial price, but also a long-term investment that can pay dividends.

Reduce your costs

Gerrad refers to this affordability. “There are certain costs that cannot be avoided: there is not much you can do to reduce legal expenses. However, advice like this is essential and often mandatory. But careful planning can help save money in other areas to increase deposits that little.

Is it better to hire a moving company or call a friend? You can save money on heating by choosing a modern property that is well-insulated over an alternative period.

These little tricks, combined with the money-saving strategies for accumulating deposits – such as walking to work to cut down on tube tickets prices by hundreds of dollars per month – can be a great help. Meanwhile, a mortgage advisor can – Especially the advisor independent of building societies – to give useful advice as well.”

There is support

There are many government support programs that can help you purchase real estate. Consider the Mayor’s initiatives in London, such as “joint ownership‘ allows individuals to purchase a minimum of a 25% interest in the property and to pay regulated freehold rental on the remainder.

“Home ownership remains a laudable aspiration for many. And although it is difficult, there are some tricks available that will help make the dream a reality.”