The average price for first-time buyer homes in London reaches £300,000

A new report reveals the average cost of a first-time buyer home in London has now reached £304,205.
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The average price paid for a home by first-time buyers in London has surpassed £300,000 — a new record.

By contrast, the average UK-wide first-timer must find a comparatively modest £155,782.

First-time buyers in the capital also have to find a deposit of more than £67,000 to secure the average property, compared with £25,890 out of town.

New research, by Your Move and Reed Rains, shows that despite the average starter home in London now costing £304,205, some 9,100 first-timers bought a home in the capital in the first three months of this year.

This compares with 11,700 in the first quarter of last year, when an average starter home cost £266,497 (£66,198 deposit), but the first-time buyer pace is accelerating, as the top-price buyers fall away.


According to the latest Land Registry house price index, property values in the capital are starting to flatten — showing a minimal 0.2 per cent increase in the past month. 

However, this will be of little comfort to would-be buyers since a strong rise last spring means the annual price change remains an impressive 11.3 per cent and the average property price stands at £462,700 — two and a half times the average price across England and Wales (£178,007). 

The capital’s buoyant prices mean that fringe areas, where there is still value for money, are feeling the benefit, while the most expensive boroughs are seeing price rises barely above inflation. 

Within London, the best performing areas in the past year were Newham (up 19 per cent to an average of £291,364), and Greenwich (up 18.8 per cent to an average of £353,926).

​The biggest “loser” was Kensington & Chelsea, where average prices rose 5.2 per cent to just less than £1.3 million.

The only areas that have outperformed London are a trio of commutable but relatively inexpensive regions — Thurrock, Hertfordshire and Reading, which have all seen price rises of 13 per cent.

Kensington & Chelsea has enjoyed the strongest house price growth during the five years of coalition Government — just under 48 per cent — but what happens after the election will depend on Labour’s proposed mansion tax, much feared by Londoners. 

Two other Conservative strongholds, the Cities of London and Westminster, and Chelsea and Fulham, saw growth of just more than 40 per cent during the same period.

Only three Labour constituencies were in the top 10 house price performers, according to the report by — Tooting, Islington North (both up 38.2 per cent) and Tottenham (up 35.7 per cent).

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