The government announced today that they would continue flogging the dead horse of ‘Help 2 Buy’, promising £4bn to build 135,000 shared ownership homes for households under £80,000 (£90,000 in London).
Mr Osborne has also announced a new ‘London Help 2 Buy’ scheme, offering help for those with a 5% mortgage deposit. Given that this translates to a deposit of £25,000 on the average London house price, I can’t imagine it will help too many who are struggling to get on the ladder in the first place.
We asked some London residents could they save £25k as a deposit for a London home?
Rosey, 35 from London. “I saved for 10 years to buy my house, and Ihad a deposit with my husband of, God, about 90 grand, and even that was not really enough,and we’re now mortgaged up to the eyeballs. So, I don’t think 25 grand is going to do anything a tall to help anybody, really, unless you want like a postage stamp in zone six.”
Sarah, 28 from just south of London. “Saving 25,000 pounds for a house deposit would take rather a long time. I live in the south, andit’s hard enough to try to save a 5% deposit for sort of a 200,000 pounds flat, let alone payingLondon prices. I think for London to get on the property ladder, maybe there should be anincreased, maybe you should only have to save 2 1/2% to be able to get you started, and thenafter a certain term, then maybe you start to pay it back or something. But, yeah, 25,000. But then, London wage is higher, so perhaps it would be, it would be easier to do.”
Chloe, 32 from Bromley “This wouldn’t help me at all. If I didn’t already own my home in London, I wouldn’t be saying thatwhat Mr. Osbourne has said today would be helping me in any way at all. I just couldn’t save 25thousand pounds. No one can save 25 thousand pounds if they’re already living in London andrenting. It’s just impossible. The only way people can do it is from borrowing money from theirparents. It’s not going to help the majority of people. I certainly don’t think it will help any of my friends.”
Lee, 28 from London. “I wouldn’t be able to save 25,000 pounds deposit for a London home. For me, that’s over a year’swork before tax, so it’s quite a lot to save, and that would probably take me, if I’m lucky, six yearsto save. So, in potential I could do it, but in a six-term period. Living at home still would do myhead in, I think. But my other option is rent, and then I wouldn’t be able to save that deposit aswell as my rent. Luckily, though, I’ve got my own place already. Not in London, somewhere wheremy deposit was only 10,000 pounds, so it works out a lot better for myself.”
Grant, 35 from London. “Could I save 25k as a deposit for a London home? The only answer to that one is no. I have threechildren and my job is not amazingly paid. Not only that, I’m only working part time because ofmy children but it’s a hell of a lot to find. So no, the answer is no and I think that london housesare just far too expensive. I understand that it’s a great city and there is great things to do here.But it’s really hard unless you’ve got a really high income to get that sort of money. Even then it’sjust still hard to find the right property. So no I wouldn’t be able to save that because I just don’tafford enough. Yeah, that’s my answer really.”
Aqsa, 35 from London. I think nobody can save 25K to deposit for a London home, because it’s very expensive and it’s ahuge money for a normal person to earn, especially on the minimum wage working people havingand supporting families. It’s a crazy idea, and I wouldn’t be, it wouldn’t be possible for me, atleast”.