Rising London house prices a challenge to 20-something bankers
04-11-2014
London At Night John Mitchell
Ian Bolland Profile Pic
written by Ian Bolland
The London housing market is a feverish thing.
In the past year, prices in the City have risen 18% to an average of £363k ($609k). In the most up-and-coming boroughs (eg. Brixton and Hackney) house prices have risen faster still, and in the most desirable areas (Kensington, Notting Hill), prices are far higher. A one-bedroom flat in Notting Hill can easily cost you more than £1m ($1.68m), for example.
eFinancialCareers reports that the over-heating housing market is a challenge for the new crop of 20-something bankers. Many work long hours and need to live close to the City or to Canary Wharf. However, house prices in popular boroughs close-by are prohibitively high – even if you’re earning six figures. In the circumstances, 20-something financial services professionals say they’re opting for an age-old solution: lodgers.
'It’s become a real trend', says Adam, a private equity professional working in London’s West End. 'People in finance have started buying properties and renting out a room or two while they live there. It makes sense – rental yields are so high in London right now that you can pretty much pay your mortgage using the other person’s rent money'.
'A lot of my peers are buying themselves a two or three bedroom property and renting a room out', confirms Sajid, a second year analyst working for an international bank in Canary Wharf. 'I’m planning to go down that route, but I haven’t got enough for the deposit yet'.