The report published by Studio B – a new financial innovation department created by Clydesdale and Yorkshire Banks – shows 23% never expect to be able to save enough for a deposit to buy in the capital while the average age at which people expect to be able to afford a deposit is 37 – seven years older than the average age of first time buyers in the UK.
The report found to save a deposit of 25% buyers would need to save for on average 59 years – going by current saving patterns.
Almost one in three Londoners (30%) aged 18-40 do not save any money in an average month and 59% cite high rent as the single biggest barrier to saving more.
The report comes ahead of the launch of the government’s new Lifetime ISA which aims to help people save for a deposit on a house or for a nest egg for retirement.
Helen Page, group innovation and marketing director, said: “We know how difficult it can be for younger generations starting out on their own. The whole point of Studio B is to work with the customers of tomorrow to find the most innovative solutions to the problems they face. Studio B will help customers build a better relationship with their money.”