"Over the past five years, the price of a first-time buyer purchase in London has risen by an average 67%, with some parts of the capital recording even more substantial rises."
The average mortgage in the capital is now nearly double that for a new first-time buyer in the UK as a whole.
The average mortgage ranges from £461,632 in Westminster to £241,520 in Barking & Dagenham. The average mortgage in Barking & Dagenham has risen by over £100,000 over five years despite the borough remaining at the bottom of the table in terms of mortgage size.
In monthly terms, the average mortgage payment paid by a new first-time buyer varies by almost £1,000 from £1,055 in Barking & Dagenham to £2,017 in Westminster.
Over the past five years, first-time buyer house prices in London boroughs have risen most rapidly in Waltham Forest, increasing by 93% from an average of £212,629 in 2012 to £409,491 in 2017.
The boroughs recording the next biggest gains are Newham (92% to £359,212) and Greenwich (91% increase to £382,945). All three boroughs had average prices well below the London average five years ago.
Westminster has seen the smallest rise in prices since 2012 with an increase of 28% to £595,568; less than half the gain across London as a whole (67%) and significantly below the UK average of 50%. However Westminster was the most expensive borough for first-time buyers in 2012 with an average price of £466,482; 92% above the London average of £242,931.
Hammersmith & Fulham (36%), Richmond-upon-Thames (47%), Camden (47%) and Islington (49%) were the only other boroughs to experience an average first-time buyer house price rise of less than 50% between 2012 and 2017.
Despite its relatively small price gain over the past five years, Camden has become the most expensive borough for first-time buyers, with an average house price of £602,080. At the other end of the scale, Barking & Dagenham has remained the least expensive borough for first-time buyers despite a 74% rise in average prices since 2012. The borough is the only one where the average price paid by first-time buyers is below £300,000 (at £292,446).
Andrew Mason, Lloyds Bank Mortgage Director, commented: “Over the past five years, the price of a first-time buyer purchase in London has risen by an average 67%, 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 5% drop in first time purchases last year.”
