Research from Lloyds Banking Group of 880 adults found those living in the capital were the most dissatisfied with their local property market and 67 per cent expected prices to rise within three years, making it less affordable and attainable.
According to the latest Halifax house price index, property prices in London rose 5.4 per cent annually to over £550,000.
Concerns among Londoners include unaffordable house prices, with 68 per cent citing this, while half of the respondents said a lack of social housing was an issue.
Some 40 per cent said deposit requirements were an issue, while 44 per cent said there was not enough quality, affordable rental homes available.
Other concerns included a lack of new homes being built, as cited by 31 per cent of respondents, a quarter said economic issues caused by the pandemic and 23 per cent said the impact of Brexit on the economy and supply chains.
Additionally, 45 per cent said homes were not being built where people wanted to live and 55 per cent said homes did not meet the needs of their local area.
As for what London-based buyers want from their homes, two-thirds said good transport links, nearly half wanted to live near sufficient amenities and 43 per cent wanted to live in an attractive area.
Some 39 per cent wanted to live near family and friends while 28 per cent wanted a big garden.
Simon Kenyon, Lloyds Banking Group’s ambassador for London, said: “House prices and transaction volumes, even among first time-buyers, have remained strong during the pandemic. However, this research also shows that many people in London consider the continued strength of prices as the biggest factor preventing people from accessing quality and affordable homes.
“Understanding these local trends, will be vitally important in ensuring the homes being built keep pace with the changing needs of individuals and local communities. That’s why, as part of our commitment to help Britain prosper, we are working across the industry to collectively work out how we deliver the high-quality, sustainable and affordable homes that London needs.”
Marc Vlessing, CEO of Pocket Living, one of London and the South East’s affordable housing developers, said: “The findings of this research echoes what we hear all the time from aspiring first-time buyers; Londoners want a space they can call their own without having to compromise on the many benefits of city living.”
Pocket Living has partnered with Lloyds to help deliver discounted homes in London.
Vlessing added: “If we are to accelerate this to the next level, we need to see ambitious planning reform that encourages greater innovation in the market and that unlocks the potential of urban brownfield sites for affordable housing.”
