First-time buyers will pay twice as much to buy a home in London compared to elsewhere in UK
New research from Lloyds Bank reveals it now costs twice as much for first-time buyers to buy a home in London compared to anywhere else in the UK (£420,132 vs £210,515). During the past five years, the average price of a property bought by a first-time buyer in London has risen by 64%, from £255,794 to £420,132.
Since 2013, the number of buyers getting on the capital’s housing ladder has fallen by 5% to 42,983 in 2017. Five years ago 17% of all first-time buyers in the UK were in London, today that proportion has fallen to 12% according to Lloyds Bank.
Andrew Mason, Lloyds Bank mortgage products director, said: “Despite the recent slowdown in London house prices this latest data shows how expensive it has become to live in the capital, particularly for young people trying to get on the ladder for the first time. As a result, first-time buyers have to wait until they are 34 before getting their first foot on the property ladder.
“While property prices drop as you head to the fringes of the capital, our analysis is showing that this gap is closing as house price growth in Outer London boroughs is continuing to increase at a greater pace than Inner London boroughs. This healthy growth may be linked to a high demand for these more affordable properties as well as some areas benefiting from the new Crossrail link due to open next year as commuters move further afield.”
Read the report from Lloyds Bank 23rd May 2018 in full click here.