A 5% deposit is not actually available from a lot of lenders. In some cases, a new build apartment is only offered at 20%, sometimes even a 25% deposit is need

A 5% deposit is not actually available from a lot of lenders. In some cases, a new build apartment is only offered at 20%, sometimes even a 25% deposit is needed. Even if you do get a mortgage with a 5% deposit, it will probably be on a new build, which may have a much higher price that nearby property that isn't. It is true that most of the banks expect you to have a backer, parents, recent inheritance etc. I had a mortgage advisor that was surprised that I didn't have such a situation, which shows the state of those buying in London right now. Most of the people I know under 30 that have recently bought, had such a circumstance through inheritance, with large deposits going down. A 500k, 2 bedroom flat, with a 100k deposit can have a mortgage of £1000 a month. If you were to rent the same flat, you would most likely play £2000 a month. The situation that a lot of people haven't talked about is single people attempting to buy, probably because it almost never happens anymore. Even at a modest £250k, this still will require a lot of cash in the bank and high salary, so single people are now stuck with renting until they meet someone. To those who are wondering why you would buy central London at all, its definitely down to lifestyle. If you go out a lot in the city, getting a uber home is the difference between £15 and £50. The ability to walk to work for some people is also extremely important, as they have a feeling that when they do marry and have kids, they will move out to the suburbs and take a 40 minute train every day.