The average first time buyer deposit in Camden, at £145,148, is over five times higher than the national average of £27,537. The average house deposit in Camden actually costs £10,000 more than the average firs time buyer house at £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 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, according to Stephen Noakes, Halifax mortgage director.
‘The research showed that only four in every 10 people think they could get a mortgage, yet we accept eight 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 as lenders are still lending. In the past year alone we’ve provided over £1.5 billion in mortgages to first time buyers in Greater London,’ he explained.
‘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,’ he added.
The research also shows that since 2007, the average first time buyer house price in London has fallen by 15% from £286,987 to £244,041. Since 2007, the average first time buyer house deposit in London has fallen by 8% from £62,216 to £57,175.
The biggest percentage fall is in Greenwich, where the average first time buyer house price has dropped by 14% to £200,946 and the biggest percentage increase is in Harrow, where the average first time buyer house price has increased by 8% to £285,334.
The average first time buyer house price in London at £244,041 is £108,572 more expensive than the UK average first time buyer house price which is £135,468.
The average first time buyer deposit in London at £57,175 is £26,639 more expensive than the UK average first time buyer deposit of £27,537.
The lowest average first time buyer house price in London is in Barking and Dagenham at £167,846 but it is still £32,378 higher than the UK average first time buyer house price of £135,468.
The lowest average first time buyer deposit in London is also in Barking and Dagenham at £29,921 and it is still £2,384 higher than the UK average first time buyer deposit of £27,537.
