Read the latest Junaid Iqbal Mohammed Memon blog. Junaid is an experienced property developer based in Dubai and in London. Coming from a business-oriented family, he has learned some business secrets at an early age, which has inspired him to forge his own path and make for himself in the real estate and property development industry. To date, he has several businesses in the UK and in Dubai and he also has several completed development projects under his belt.

First-time property buyers in London now have to put down deposits that are high enough to let then buy an entire house on the spot anywhere else in the country. Average starter homes in the capital now cost an average of £420,000. This means that buyers will have to shell out a whopping £114,952 if they are to cover the 27% required deposit. Still, despite the deposit reaching such eye-watering levels, the number of first-time property buyers in London seems to be increasing.

It is worth noting that this particular deposit would be more than enough to comfortable purchase on the spot a terrace house with three bedrooms in Scarborough on North Yorkshire. It can buy a cottage with two bedrooms in one of the villages in the Midlands. It can also get one a smart flat with two bedrooms in parts of Essex or in Norfolk. Still, despite the prohibitive costs of entry, the number of first-time property buyers in London seems to be steadily rising.

Last year alone, more than 150,000 were able to successfully get on the property ladder. This is certainly a good figure especially when compared to the 72,700 recorded back in 2009, back when the country was in the depths of a recession. According to research though, this has been made possible thanks to parents that are handing over huge lumps of cash to their children in order to help them on to the housing ladder.

Only about 35% of people aged 18 to 34 intend to work on saving up for a deposit. Most of these people intend to stay at home until such time as they can finally afford to purchase a place they can call their own. This could be a sensible decision though especially if one were to consider how costly the rents in London are.

An average property in London will have an annual rent of about £20,000 a year.  More recent data shows that by average, a London renter will have to pay around £1,615 every month for rent- something that has actually increased by 3% when compared to how much they were paying last year. Meanwhile, rent in the rest of the country is at £777 per month, which is up by a percent from the figures last year.

The increase in the rent price means that those who belong in the Generation rent now have to spend a third of their overall income on housing costs. This leaves them with very little wriggle room when it comes to saving for a deposit.

As of the moment, the average age for people that can finally afford to buy property for the first time has gone up to 31. Still, their number seems to continue to grow and is even nearly back to its peak as was seen in 2006.

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The next year is going to be a bumper for renters and first-time buyers. Interest rates are expected to work in their favour come 2018.

Interest rates are expected to rise by about 0.25% in spring. This means that the base rate of the Bank of England is going to be increased to 0.75%. This adds a total amount of £22 for a tracker mortgage worth £175,000.

However, it is also a fact that more than half of all the borrowers are currently at a fixed rate. This is why despite the good news, there is a very good chance that this may not be felt by every home-owner.

There has been an increase in the number of new homes were built.  Out of these units, 217,000 came onto the market around 2016-2017. Compared to the numbers accrued the previous year, this shows a total increase of 20%. This means that the total is now being brought back to levels that were observed before the occurrence of the financial crash. However, this is still seen as quite a long way from the government set the target at 300,000.

There is a decrease in a migration and combine that with the increase in construction activity,  the supply of houses are going to be under less pressure when compared to how things are the previous years.

However, it has been predicted by the Council for Mortgage lenders that the numbers are going to fall below 80,000 next year. The increase in taxes, as well as the tougher regulations set for lending, gives more advantage to homebuyers instead of property speculators. Chancellor Phillip Hammond announced that for this year’s budget, property stamp duties are abolished for first-time buyers that want to buy properties that are worth up to £300,000. This means that first time buyers are likely to save up to a total amount of £5,000.

The break for stamp duty along with the availability of the equity loan scheme Help to Buy will mean that there is never going to be a better time that will be deemed perfect to buy brand new homes.

The increase in rent which has been going on for years would likely mean that landlords will no longer be able to add any more to their present rates. The average rental rate in the UK increased by one percent this year in London. Another reason why people will not expect rate increases this year is the fact that salaries are presently under considerable pressure from inflation.

It is expected that tenants will be happy the moment the ban on the fees that letting agencies charge will take place. While it has not been specifically stated when it is going to arrive, it is expected to next year, as was revealed by the government.