Over £100,000 more expensive to buy your first home in London
14 November 2012
New first time buyer figures from the latest Halifax Generation Rent research demonstrate the extent of the challenges for those looking to buy their first home in London. The figures show that the Local Authority with the lowest average house price and deposit (Barking and Dagenham) is still more expensive than the national average.
The average first time buyer (FTB) deposit in Camden, at £145,148, is over five times higher than the average national FTB deposit (£27,537). The average house deposit in Camden actually costs £10,000 more than the average UK FTB house (£135,468).
Further to this, the Local Authority of Kensington and Chelsea is so expensive that it has priced itself out of the research, with so few first homes bought in the area in 2011 that the sample size was too small to include.
Despite the high prices, there are still options available to first time buyers, and the mortgage market is better than many people think.
Stephen Noakes, Mortgage Director, Halifax, said:
“Halifax’s Generation Rent report showed that only 4 in every 10 people think they could get a mortgage, yet we accept 8 out of every 10 applications. The mortgage market in London isn’t what it used to be, but it isn’t as bad as many people think – lenders are still lending. In the past year alone we’ve provided over £1.5bn in mortgages to first time buyers in Greater London.
“Londoners shouldn’t just assume they won’t get a mortgage – always speak to a mortgage advisor and find out. You can arrange an appointment with an advisor in any Halifax branch; an advisor will look at your individual circumstances and discuss the various options available, such as buying a new build property. The NewBuy scheme enables first time buyers to purchase new build properties on a higher loan to value mortgage; up to 95% in many cases. There are thousands of new builds within the M25, usually costing between £160,000 and £500,000, so you could get a brand new property with a deposit as low as £8,000. There are also a number of areas that have relatively lower average house prices while still providing convenient access to work – such as Southwark for the City, or Lewisham for Canary Wharf.”
First Time Buyer Hali-facts
- Since 2007, the average FTB house price in London has fallen by 15% (£42,946) from £286,987 to £244,041.
- Since 2007, the average FTB house deposit in London has fallen by 8% (£5,041) from £62,216 to £57,175.
- The biggest (by percentage) fall is in Greenwich, where the average FTB house price has dropped by 14% to £200,946.
- The biggest (by percentage) increase is in Harrow, where the average FTB house price has increased by 8% to £285,334.
- Halifax’s Generation Rent research showed that only 4 in every 10 people think they can get a mortgage. However, Halifax accepts 8 out of every 10 FTB applications
- Halifax provided nearly 9,500 first time buyers in Greater London with a mortgage in the last year – providing mortgages worth a total of more than £1.5bn.
- Halifax provides 1 in 4 FTB mortgages.
- The average FTB deposit in Camden (£145,148) is nearly £10,000 higher than the national average FTB house price (£135,468), and over five times higher than the average national FTB deposit (£27,537).
- The average FTB house price in London (£244,041) is £108,572 more expensive than the UK average FTB house price (£135,468).
- The average FTB deposit in London (£57,175) is £26,639 more expensive than the UK average FTB deposit (£27,537).
- The lowest average FTB house price in London (Barking and Dagenham: £167,846), is still £32,378 higher than the UK average FTB house price (£135,468).
- The lowest average FTB deposit in London (Barking and Dagenham: £29,921), is still £2,384 higher than the UK average FTB deposit (£27,537).