Affordability hits first-time buyers in London

The unaffordability of London's housing market has led to a significant decline in first-time buyers over the last decade, with numbers dropping by 8% from 2014 to 2024, according to Halifax. However, there was an uptick last year, as 44,500 first-time buyers entered the market, a 20% increase from 2023, attributed to improved mortgage affordability. Amanda Bryden, head of mortgages at Halifax, stated: “Last year saw a big increase in the number of first-time buyers, up almost a fifth from 2023.” The average first home in London costs £511,500, with deposits averaging £124,700. The situation is exacerbated by limited housing supply and rising prices, with many young people being driven out of the capital. Simon Gerrard, an estate agent, noted that the Chancellor's decision to scrap stamp duty relief has spurred activity among buyers. He said: “This move has prompted a lot of activity as buyers sought to bring forward their purchases ahead of the change in April this year, to save thousands of pounds in stamp duty.” 

The Standard (16/02/2025)