London's First-Time Homebuyers May Have to Put Down £250,000 Within a Decade

December 7, 2017
Notting Hill, London
Photo: Pixabay

New research mortage broker L&C Mortgage says average deposits for first-time homebuyers in London could rise 75 percent, from £140,000 this year to £245,000, by 2027.

In London, high demand and a housing inventory shortage has caused price growth to outpace the rest of the UK for over the past twenty years. Data from Halifax has similar findings to L&C Mortgage, showing that Londoners' average deposit is £106,577, and that first-time homebuyers are paying £410,000 on average. Hometrack found that the average house price in London is 14.5 times the average income of its residents, per Business Insider.

Figures from the Office for National Statistics show that the value of land in the UK has grown fivefold since 1995 ... worth an estimated £5 trillion. The average house price in London was £484,000 in August 2017, according to the Office for National Statistics, compared with a UK average of £226,000. Estate agents Savills forecasts that prices will dip 2 percent next year before returning to robust growth.

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