If you are looking to rent while you save money to buy a home, you need to strike the balance between saving a lot of money each month, and living somewhere that is right for you. At Hunters Greenwich, we believe the local area has a lot to offer.
One company has examined London boroughs and reviewed their suitability for renting while you save for a deposit. If you are looking to rent while you save for a deposit, you will find Greenwich is of interest.
Greenwich is a suitable London borough to save money when renting
Greenwich is classed as a Zone 2 area, which helps to lower the cost of transport. While commuting isn’t an issue for many people right now, thanks to remote working, it is an issue that is worth considering in the long-term.
One area that is hugely pertinent in the study is the monthly rental fee on a one-bedroom property. In Greenwich, this has been listed as £1,220. If you are a couple, sharing the bedroom and splitting the rental cost between you, this isn’t too bad a price and it should help you put funds aside for your deposit at a later date.
It is important to note the amount you would expect to spend on bills, council tax and recreation. The flatfair study suggests a sum of £2,595.54 for Greenwich, and again, if this is split between a couple, it will hopefully be an affordable sum of money.
The study suggests renting in Greenwich provides the opportunity to save £2,299.24. When you consider the average cost of buying property in the borough, saving for a 10% deposit will take 20 months. If you are looking to save for a 15% deposit, it should take 30 months.
This seems like a long time, but it is two and a half years. If you are committed to owning property, saving for two and a half years isn’t overly ambitious, and it should enable many people to raise the funds they need to step on to the property ladder.
Franz Doerr, CEO of flatfair, said: "It’s an outdated attitude to think that the first rung of the housing ladder only starts when you are finally ready to buy your first home. More people are renting for longer than ever, and the economic impact of Covid-19 is only going to accelerate that trend. However, many renters will eventually want to own their home and their ability to have consistently paid rent on time should be taken into account by lenders who may be imposing stricter mortgage requirements for some time. Otherwise, we risk making homeownership an unattainable goal for many which will distort the entire housing market.”
If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters Greenwich today for all your housing and letting needs.