Millennials who are struggling to buy a property in London should stop splurging on takeaways, sandwiches and nights out, an estate agent has advised.
Strutt & Parker claimed millennial couples could save enough for a deposit in five years by giving up six “luxuries”.
Potential homeowners could accumulate £64,000 within half a decade by making “relatively small changes” to their lifestyles, it said.
The calculations suggest giving up a night out once a week could save more than £6,000 a year and cutting out takeaway meals would knock £2,640 off household spending.
Preparing lunch at home rather than buying sandwiches or salads saves £2,576 on average, and cutting out an annual foreign city-break could be worth another £700 a year.
Meanwhile, sacrificing the average annual Lottery habit would save £832 a year and not going ahead with a mobile upgrade would save a further £154 annually.
Stephanie McMahon, head of research for Strutt & Parker, said the average deposit needed to get on to the property ladder in London is £94,000.
She claimed those “lucky enough to have family that can help” would receive an extra £29,400 towards their goal.
“Our research has shown that if a couple sacrifices six luxuries for at least five years, they can put away significant savings to help stretch up to that all-important first rung,” McMahon added.
The analysis has led to a barrage of ridicule on social media for being naïve, incorrect and failing to offer any alternatives to its saving tips.
Charlotte Windsor, 22, a sales worker from Walthamstow, said if she gave up all these “luxuries” it would still take her 94 years to save up enough money.
She added: “I pay £625 all inclusive and with the sort of job I’m in it is just ludicrous to expect us to save that amount. Just cutting these things out would save money, but does that mean we aren’t allowed to have a life while we save up for a home?
“I don’t see any other generations having to have done that. Maybe you could have fewer takeaways, but cutting it all out is going to be a depressing life.”
Meanwhile, Annabelle Gater, 21, who works in performing arts and lives in Walthamstow, said: “I rent with two others in a flat that costs £1,600 per month. Where I come from, near Manchester, it costs £500 for the same thing. I don’t think people should have to give up their social lives to afford a house. I want to be able to have a family in my own home and not to be renting for my whole life.”
The advice mirrors comments from Australian property mogul Tim Gurner, who earlier this year urged millennials in Melbourne to stop buying avocado on toast and expensive coffees and save more towards a deposit.
Rates of home ownership among young Londoners have plummeted over the past 25 years from 57% to 27%.
DealMakerz thinks that while the advice may have been well-meaning, it comes across as patronising and unsympathetic towards people who are already scrimping and saving.
Unlike the market Strutt & Parker typically targets, we doubt many millennials are spending anywhere near the amount the analysis suggests.
The fact people need a £94,000 deposit shows London needs a significantly more ambitious affordable housing policy.