23 May 2018
Soaring property prices mean that first-time buyers are forced to “pay double” in London to get on the housing ladder, a new report reveals today.
The average buyer in the capital has to find £420,132 for a first home, almost twice the £210,515 typical for the rest of Britain, according to research from Lloyds Bank.
It found that the average price has soared by close to two thirds over the past five years despite the slowdown at the top end of the market, particularly in central London.
The average deposit paid by a first-time buyer in London is £92,833, more than 60 per cent higher than in 2013. The highest deposits were in Camden where they average £175,844, a 28 per cent jump from £137,079 five years ago.
Haringey has seen the biggest increase in deposits paid by first-time buyers. They have more than doubled from £63,447 in 2013 to £131,827. The size of the average London first-time-buyer mortgage has also soared — by 65 per cent in the past five years to £327,299, compared with £170,847 for the rest of the UK.
The figures suggest that “generation rent” still face a near-insurmountable challenge to get on the first rung of the ladder without a major financial leg-up from their families.
Levels of home ownership among the under-40s have plummeted over the past decade as buy-to-let, foreign investors and demand from London’s growing population have forced up prices.
Government schemes such as “Help to Buy” — aimed at young buyers — have also underpinned prices.