Londoners budget this christmas due to high rents and mortgages

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Londoners budget this christmas due to high rents and mortgages

Figures show that 58 per cent of Londoners will be keeping a close eye on their bank accounts over the festive period because of high rents and mortgages.

The rising cost of homes is preventing or putting people off buying, but in a city like London renting is far from being a cheap option.

Average rent for new tenants has risen by 7.5 per cent in the last year, as the demand for housing is far greater than the number of homes being built.

The report, from BSA Property Tracker, shows that for the fourth year in a row, raising the funds for a deposit is considered the biggest single barrier to ownership of a property for both first time buyers and second steppers. The reports said that the problem will continue until a sufficient a number of properties start being built.

Some steps have been by the government with a scheme to build 10,000 homes on the former RAF base in Northstowe, near Cambridge and the Chancellor George Osbourne made reforms to stamp duty making the situation easier for potential home buyers.

Rob Thickett, a Mortgage Policy Advisor at The Building Societies Association, joined Wake Up London to discuss the matter and explain why he is calling for the matter to be treated a priority by the UK government. 

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