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First-time buyers in London pay DOUBLE for a home than anywhere else in the UK

The average price of a first-time buyer home in London has risen by two-thirds in the past five years

IT costs twice as much for first-time buyers to buy a home in London compared to anywhere else in the UK, new research has revealed.

The study - conducted by Lloyd's Bank - shows that the average house price in the capital is £420,132 compared to £210,515 outside of the city.

 An average for London was found to be £92,833 versus £39,668 regional residents
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An average for London was found to be £92,833 versus £39,668 regional residents

Those figures note a 64 per cent increase in prices for Londoners over the past five years.

The typical deposit used to buy a first London home has also increased greatly and is more than double than other first-time buyers across the UK.

An average for London was found to be £92,833 versus £39,668 regional residents.

The number of London first-time buyers has fallen for three consecutive years whilst the overall number has increased for six years straight across the rest of the UK.

 The average price of a first-time buyer home in London has risen by two-thirds in the past five years
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The average price of a first-time buyer home in London has risen by two-thirds in the past five yearsCredit: Getty - Contributor

Elevated house price levels are likely to have been a key factor in this slowdown.

Andrew Mason, Lloyds Bank mortgage products director, said: ''Despite the recent slowdown in London house prices this latest data shows how expensive it has become to live in the capital.

''Particularly for young people trying to get on the ladder for the first time.

He continued: ''As a result, first-time buyers have to wait until they are 34 before getting their first foot on the property ladder.''

What help is out there for first-time buyers?

GETTING on the property ladder can feel like a grim task but there are schemes out there to help first-time buyers own their own home.

Help to Buy ISA - It's a tax-free savings account where for every £200 you save, the government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move.

Help to Buy equity loan - The government will lend you up to 20 per cent of the home's value - or 40 per cent in London - after you've put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.

Lifetime ISA - Another government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards your first home. You can save up to £4,000 a year and the government will add 25 per cent on top.

Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones.

"First dibs" in London - London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.

Starter Home Initiative - A government scheme that will see 200,000 new-build homes in England to be sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest .

According to the latest English Housing Survey, the average age of a first time buyer now stands at 33 - and they need an eye-watering average deposit of £50,000.

But despite the problems of getting on the property ladder Brits still dream of buying their own home, with 60 per cent of renters still intending to buy a house.

One young couple lived on a diet of beans and noodles while they saved to buy their first home for £220,000 all before they turned 21.

And Ethan Bragginton and his girlfriend Aimee managed to do it alone when he was just 18 and she was 20 - but he had to move away from London to be able to afford it.

We also looked at the £120,000 homes first-time buyers can afford without putting down a deposit.


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