First-time buyers in London face price rises of 67%

First-time buyers in London face price rises of 67% [Image: Drimafilm via iStock]

First-time buyers in London are facing price rises of 67 per cent since 2012, according to new research.

Lloyds Bank has found that house prices have risen most rapidly in Waltham Forest, increasing by 93 per cent from an average of £212,629 in 2012 to £409,491 in 2017.

The boroughs recording the next biggest gains are Newham, which rose by 92 per cent to reach an average property price of £359,212, and Greenwich, where prices rose by 91 per cent increase to hit £382,945.

Westminster saw the smallest rise in prices since 2012, Lloyds Bank said, with an increase of 28 per cent, leaving prices standing at an average of £595,568. This is less than half the gain across London as a whole (67 per cent) and significantly below the UK average of 50 per cent.

The research found that Westminster was the most expensive borough for first-time buyers in 2012, with an average price of £466,4821, which was 92 per cent above the London average of £242,931.

Despite its comparatively small price gain over the past five years (47 per cent), Camden has become the most expensive borough for first-time buyers, with an average house price of £602,080.

Andrew Mason, Lloyds Bank mortgage director, said: “Over the past five years, the price of a first-time buyer purchase in London has risen by an average 67 per cent, with some parts of the capital recording even more substantial rises.

“This means monthly mortgage payments and deposits have increased substantially, making it increasingly difficult for many young people to buy their own home, and as a result we saw a five per cent drop in first time purchases last year.”

Lloyds’ research also revealed that the average mortgage taken out by a first-time buyer in London has increased by 71 per cent, rising from £185,538 in 2012 to £317,253 this year.