London’s housing market remains “challenging” for first timers

The capital’s property ladder remains challenging for those hoping to own their first home, reveals new figures.

Data from UK Finance shows the average first-time buyer in the city is 32 years old and has an income of £66,000.

During the last three months of 2017, a total of 10,700 new first-time mortgages were completed – almost the same level seen at the end of 2016.

“Subdued growth in the number of first time buyers shows that affordability remains a challenge in the capital,” said Jackie Bennett, director of mortgages at UK Finance.

London did see an 8.5 per cent rise in new home lending during the last quarter of 2017, with the average moving now aged 37 with an income of £89,000.

The activity in the remortgage market was strong, with a 9.8 per cent increase in remortgages at the end of 2017 compared to the previous year.

Ms Bennett added: “London’s mortgage market remains competitive, with strong growth in the number of home movers and remortgaging reaching an eight-year high.”

She also stressed it is key for the government to expand in how it plans to support first-time buyers once the current Help to Buy scheme comes to an end in 2021.