Exclusive research by Home Ownership Accelerator, District 34, shows there are more than 2,000 millennials aged 25 – 34 for every new-build transaction priced £300,000 and below in the capital.
Analysis of Land Registry transactions by District 34 has revealed the scale of the rent trap affecting hundreds of thousands of Londoners who are earning good wages, but can’t afford to get on the first rung of the property ladder.
This new research shows that so far in 2018, Newham – supposedly one of London’s cheapest boroughs for housing – has 777 millennials competing to buy each new-build starter property. In neighbouring Hackney, the number is 7,047. Islington tops the list with over 60,000 millennials for each starter property so far in 2018.
The 33 districts of London are no longer affordable for the millennial generation looking to get on the housing ladder. District 34’s mission is to bring the dignity and security of home ownership to Londoners who are currently priced out.
District 34 Data Scientist, John Lim, says;
“We did not become Generation Rent because of a craving for avocado on toast. The homes we rent have been snapped up by global investors hunting for financial security, who are happy to pay through the nose for assets that give them stable returns for long periods. The outcome? A generation stuck in a vicious rent trap.”
“The majority of Londoners earn between £20,000 and £60,000 a year and have little or no deposit saved up. District 34 is focused on creating homes they can afford to buy. We help them save up their deposit in two years and reward them along the way, with the final benefit being owning their own brand-new home, an hour or less from Central London.”
The research by District 34 shows the number of people in their twenties and thirties leaving London is growing at an exponential rate. In 2017 alone, the number of leavers aged below 35 was greater than the entire population of Islington – the most density-populated borough in London.
Londoner Yvette Boateng has signed up to District 34’s Home Ownership Accelerator;
“I’ve built a successful career in finance and yet home ownership in London seemed like an unaffordable dream. District 34 has changed all that. I’ve committed to a savings plan, which will create a deposit so I can own my first home in two years, with all the benefits of the London lifestyle I love.”
District 34 is focused on delivering starter homes for Londoners within easy commute to London, through its proprietary analysis of more than 500 datasets, including infrastructure, commuting patterns, migration trends, and house prices.
- Statistics are calculated using Land Registry data on housing transactions, and population data by age from the Office of National Statistics.
|Borough||New build transactions below £300,000||Ratio of number of people aged 25-34 per transaction|
|32 London Boroughs plus
City of London
|Barking and Dagenham||97||355|
|City of London||No transactions below £300,000||N/A|
|Hammersmith and Fulham||7||5,726|
|Haringey||No transactions below £300,000||N/A|
|Kensington and Chelsea||2||12,991|
|Kingston upon Thames||21||1,292|
|Richmond upon Thames||1||23,262|
|Westminster||No transactions below £300,000||N/A|
- Above figures represent ratio of number of people aged 25-34 per new build transaction below £300,000 in 2018 – this is already starkly worse than in 2017.
- Data from ONS for Londoners aged 34 and below leaving London during 2017 – 222,956. Population of Islington in 2011 Census – 206,125, Islington has the highest population density of local authorities in England and Wales at 13,875 people per square kilometre.
- Much more information at District34.com
- District 34 helps Londoners get on the first rung of the housing ladder. No minimum income or minimum savings are required. People who join our bespoke savings plan will receive exclusive rewards and get a grant to cover the costs of buying their home.