First-time buyers: Top 10 cheapest London boroughs to save for a house deposit whilst living at home
As many as 1.25m couples live with their parents, with a fourth admitting they made the tough decision to move home in order to save for a house deposit.
Less than a third of parents charge their child and partner rent, making the move back to the family home the perfect money-saving option for couples who want to buy a place of their own.
Three years
The average rent price in England is £725 a month, according to the most recent ONS report. With the average English house price climbing to £267,000, couples who save on rent by moving in with parents would need to live in the family home for just over three years, or 37 months, to save enough for the minimum 10 per cent deposit of £26,700.
Personal finance firm Ocean Finance analysed how long a couple in London would have to live with their parents in order to save for the average house deposit, delving into how this can differ between London borough.
The company zoomed in on the latest ONS data to uncover the average rent price in each London district.
They then calculated how many months it would take to save for the average 10 per cent house deposit in London (£50,100), based on the couple swapping their monthly rental payment to live rent-free with their parents.
This then revealed the ‘best’ London districts, based on couples having to live at home for the least amount of time.
| Local Authority | Average Saving of Living Rent-Free Per Month | Amount Saved Per Year by Living Rent-Free | How Many Months You Would Have to Live at Home |
| 1. Westminster | £2,395 | £28,740 | 21 months |
| 2. Kensington and Chelsea | £2,383 | £28,596 | 21 months |
| 3. Lambeth | £1,768 | £21,216 | 28 months |
| 4. Camden | £1,750 | £21,000 | 29 months |
| 5. Wandsworth | £1,749 | £20,988 | 29 months |
| 6. Islington | £1,733 | £20,796 | 29 months |
| 7. Hackney | £1,710 | £20,520 | 29 months |
| 8. Hammersmith & Fulham | £1,694 | £20,328 | 30 months |
| 9. Tower Hamlets | £1,675 | £20,100 | 30 months |
| 10. Richmond Upon Thames | £1,620 | £19,440 | 31 months |
If you’re lucky enough to be able to afford a rented place in Westminster or Kensington & Chelsea, swapping your rent payments to live with parents could mean you would have a house deposit in under two years (21 months), saving an average of up to £28,596 per year.
Ocean Finance also uncovered the ‘worst London districts, based on couples having to live at home for the most amount of time.
| Local Authority | Average Saving of Living Rent-Free Per Month | Amount Saved Per Year by Living Rent-Free | How Many Months You Would Have to Live at Home |
| 1. Bexley OR Sutton | £1,100 | £13,200 | 46 months |
| 2. Croydon | £1,129 | £13,548 | 44 months |
| 3. Havering | £1,150 | £13,800 | 44 months |
| 4. Sevenoaks | £1,175 | £14,100 | 43 months |
| 5. Barking & Dagenham | £1,200 | £14,400 | 42 months |
| 6. Bromley | £1,225 | £14,700 | 41 months |
| 7. Hillingdon | £1,250 | £15,000 | 40 months |
| 8. Enfield | £1,265 | £15,180 | 40 months |
| 9. Lewisham OR Hounslow | £1,300 | £15,600 | 39 months |
| 10. Barnet OR Greenwich | £1,400 | £16,800 | 39 months |
Couples living in Bexley or Sutton will be waiting some time to save for a deposit – almost four years (46 months), if they live with their parents, saving an average of £13,200 annually.
This is then closely followed by Couples living in Croydon, saving £13,548 per year, should they swap their rental payments to live at home with their parents for free.
“Moving back in with parents is a hard choice, but for many couples, it is the only option to save up for a house deposit. London house prices have increased to a record high at £501,000 on average, which means affording the 10 per cent minimum required for a deposit is not very realistic if you are also paying for rent,” commented Sarah Neate, editor in chief at Ocean Finance.