For many London house hunters, starting out a search on a low income can be troublesome, especially when thinking about high deposits.
Some people borrow money from their family or friends. For others, a credit card is an option. Some even pop into a pay-day loan shop already knowing that they will be eventually paying back double the amount they borrow.
Many estate agents in London ask for 6-8 weeks’ rent as the deposit, which is often a challenge for future tenants.
Civil engineer Jakub Kovacs, 29, say: “When I moved to London a year and a half ago, I was looking to rent a flat and all the agencies asked me to pay one month’s rent plus one and a half month’s deposit. It was impossible for me as I had just got a job and I didn’t have enough funds to get it.
“Eventually, one of my closest friends lent me the money to start off. I am still paying him back the money that I borrowed.”
Jakub thinks he was a victim of the estate agents’ avarice. But others on the property market benefit from highly priced deposits.
Elizabeth Jones, 59, retired, says: “I own a three floored house in the area, I am single and I have always rented out two of the three rooms of the house. I do actually get students who are new in London desperately seeking for an affordable accommodation
“I am from here and I believe that it is very difficult to be able to pay so much money for a simple room; that is why I offer this temporary option.”
There are, however, students in London who are not lucky enough to find the type of accommodation Elizabeth offers. Patricia, 24, comes from Spain and is completely new to the city, but as she is struggling to find the money for a deposit, she is thinking of leaving altogether.
She says: “I was very happy to come here but I didn’t get a job and the money I have saved to start my life here is running out.
“The other day I went to view a few places but when I asked about the deposit I got scared. They were asking me for more than £1000.
“I searched the internet for financial advice in these situations and I’m thinking to either apply for a loan or get into debt or just go back to my country.”
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