Experian: Youngest generation of house buyers in the UK unlikely to be found living in central parts of London

First time buyers now more likely to be living in the Western Isles of Scotland than in Kensington & Chelsea

LONDON, 28-7-2015 — /EuropaWire/ — Virtually none of Britain’s aspiring homemakers can now be found living in central parts of London, according to new research showing where the youngest generation of house buyers in the UK are now living.

Most likely to be first time buyers, Experian defines ‘aspiring homemakers’ as young families on the first rung of the property ladder, aged 26-35, typically thinking about starting a family. This group are driven by affordability when selecting somewhere to live, typically looking to balance a location close to city centre amenities with cost.

The bottom 20 UK locations for aspiring homemakers is dominated by London. Five London boroughs: Lambeth, Camden, Hammersmith and Fulham, Westminster, and Kensington and Chelsea, are in the bottom ten, alongside much more remote communities with lower populations, such as Arran and Cumbrae and the Isles of Scilly.

Bottom 20 UK locations for Aspiring Homemakers as a percentage of the local population

Local Authority % of Aspiring Homemakers
Argyll & Bute Islands  1.07
Haringey  1.03
Harrow  0.87
Southwark  0.84
Islington  0.82
City of London  0.76
Wandsworth  0.66
Eilean Siar (Western Isles)  0.64
Ealing  0.61
Brent  0.56
Lambeth  0.46
Camden  0.38
Hammersmith and Fulham  0.38
Moyle  0.32
Westminster  0.29
Arran & Cumbrae  0.21
Caithness & Sutherland  0.10
Skye & Lochalsh  0.08
Kensington and Chelsea  0.08
Isles of Scilly  0

In London, where 54% of people can no longer afford to purchase where they live, those first time buyers that remain have been pushed to the outer boroughs, with the top five locations accounting for nearly half of the total population of aspiring homemakers in London:

London Borough % of Aspiring Homemakers
  1. Bexley
           16.06
  1. Havering
           12.95
  1. Sutton
             9.07
  1. Bromley
             5.38
  1. Hillingdon
             5.37
  1. Croydon
             4.99
  1. Greenwich
             4.20
  1. Barking and Dagenham
             3.51
  1. Newham
             3.19
10. Tower Hamlets              3.07

Richard Jenkings, senior consultant at Experian Marketing Services, commented:

“Rising house prices have been a constant challenge for first-time buyers in the UK, and with deposits for first time buyers at over £80,000 on average in London, it’s clear to see why it is those trying to get onto the ladder that have been most effected by burgeoning property prices in London.

“Where young families are now setting up a home clearly has implications for a wide range of businesses and public sector organisations, from retailers to local authorities and the NHS.

“The majority of first-time buyers in London are now living in the outer boroughs, and, particularly those in the more affordable South and East of London. The central areas have become inaccessible, with the impact of house prices meaning that the percentage of aspiring homemakers within boroughs such as Kensington and Chelsea is actually fewer than we see in more isolated regions, such as the Isles of Skye and Lochalsh.”

This follows from previous research that has shown how younger families on the first step of the property ladder are in the process of creating rural suburbs in their search for more space to bring up growing families.

Nationally, the picture highlights the presence of aspiring homemakers in many towns that are within commuting reach of major cities, particularly London.

Top 10 locations for Aspiring Homemakers as a percentage of the local population

Local Authority  % households Aspiring Homemakers
  1. Bracknell Forest
25.12
  1. Milton Keynes
23.76
  1. Tamworth
23.43
  1. Rushmoor
23.38
  1. Blaby
22.96
  1. Stevenage
21.68
  1. Dartford
21.05
  1. Cannock Chase
20.30
  1. South Derbyshire
20.24
10. Swindon 20.22

“Understanding the evolving demographics of the UK is an essential insight for organisations of all shapes and sizes, helping them to connect with the right audience at the right time,” continued Jenkings. “The population in British cities has clearly dramatically altered in recent times. With central areas now dominated by a combination of the very well-off and a new generation of young renters.

“Increasingly, aspirational homeowners have to move outside the city for their first homes, while younger families who are looking for more space must look farther afield to more rural areas, with rapid transport links, to fulfil their housing needs.”

-Ends-

Experian CreditExpert has come up with some useful tips for anyone who ispreparing for a mortgage application:

  • Know what you have to spend: Consider what funds you can draw together to form your deposit. The size of your deposit will often dictate how much you face in terms of interest rates and lender fees.
  • Do your research: Use mortgage calculators and comparison websites or speak to a mortgage adviser to find out where the best deals are and what type of mortgage will suit your circumstances. Work out what you can afford to borrow and repay, both now and if rates rise by 1%, 2% or more.
  • Scrutinise your spending: Scrutinising your last few months’ outgoings carefully will help you understand exactly where your money is going. Prepare now by building good habits like increasing the amount you save, clearing overdrafts and cutting back on discretionary spending to ensure you close out the month with even a small surplus..
  • Check your credit report: As soon as you make the decision to buy, check your credit report with all three credit reference agencies. Ensure everything is accurate and up to date and reflects your current circumstances – e.g. that all of your open credit accounts are recorded and that any old accounts have been marked as “settled”. If you spot anything you believe to be inaccurate, contact the relevant credit reference agency and ask them to investigate the entry with the lender.
  • Room for improvement: If your credit report has areas for improvement, make a plan to get it into shape well before making your mortgage application. There are a number of steps you can take, including: ensuringyou’re registered on the Electoral Roll; paying down outstanding balances to less than 50% of your limit; paying off more than the minimum repayments on your credit cards each month and making sure never to miss a repayment.
  • Don’t fall at the last hurdle: Right before you make your application, take time to do some last-minute checks. Check your credit report again to make sure nothing has changed and everything is accurate right before you apply. Check the exact way your address and other personal details appear on your credit report. Small inaccuracies could see your application turned down, so don’t overlook the details.

Contact:

Nick Jones
Head of PR, Marketing Services, Experian UK&I and EMEA
+44 (0) 20 7401 3054
Mobile: +44 (0) 7583 297082
nick.jones@experian.com

About Experian
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making.

We also help people to check their credit report and credit score, and protect against identity theft.  In 2014, we were named by Forbes magazine as one of the ‘World’s Most Innovative Companies’.

We employ approximately 17,000 people in 39 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2015, was US$4.8 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, ‘Inside Experian’.

Comments are closed.