London house prices: a guide for first-time buyers

The average price of a starter home in London rose by nearly 12 per cent over the past year, according to exclusive research by Savills for Homes & Property.

The most expensive borough remains Kensington & Chelsea, which saw average prices leap from £623,750 to £740,000. At the opposite end of the spectrum, Barking & Dagenham is still the cheapest, with costs rising from £162,000 to £180,000.

Regardless of where London buyers are searching for a home, the largest obstacle to ownership is saving for the deposit.

“With the current low interest rates, owning a home is often within affordable levels for many first-time buyers,” said Sophie Chick, associate director in Savills’ residential research department and author of the report.

“The problem is that actually buying a home has become far less accessible as the deposit still remains the biggest barrier to home ownership.”