Want to buy your first home in London? Prepare to pay double
First-time buyers pay double to buy a home in London compared to anywhere else in the UK, according to Lloyds Bank – a whopping £420,132 vs just £210,515.
The average price of a first-time buyer home in London has risen by close to two-thirds in the past five years, despite the widely publiscised slowdown. During the past five years, the average price of a property bought by a first-time buyer in London has risen from £255,794 to £420,132.
The average deposit paid by a first-time buyer in London is an eye-watering £92,833, 62% higher than in 2013, and more than double the £39,668 put down by buyers elsewhere in the UK.
As a result of high property prices, the size of the average London first-time buyer mortgage has risen by 65% in the last five years to £327,299, compared to £170,847 for the rest of the UK.
But, it is still cheaper to buy than rent. A typical three bedroom house would cost a London first-time buyer around £1,248 per month with the rent for a similar property coming in at £1,545, a difference of £3,568 per year.
According to Lloyds, 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%. Rising house price levels are a key factor in this slowdown of first-time buyer activity.
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.”