First-time buyers returning to London
First published on KensingtonHouse.com on 1 October 2024. Figures, forecasts and quotations reflect that date and have not been updated. Read it as a record of the market at the time, not as a current view.
Recent data from Hamptons showed that falling mortgage rates are attracting first-time buyers back to the capital – this group has purchased a record 48% of homes sold in London so far this year, up from 41% in 2023 and 28% a decade ago.
“Lower mortgage payments have pulled the cost of buying back below renting, offering relief to first-time buyers in the capital”
The impact of lower rates on purchasing power and affordability has been significant. The average first-time buyer purchasing in London spent £443,550, £39,360 more than last year. The average London first-time buyer with a 15% deposit would now be spending £2,070 a month on their mortgage repayment, £273 less a month than if they had bought in the first half of 2023.
Head of Research at Hamptons Aneisha Beveridge said: “Falling mortgage rates are starting to turn the tide on the rising number of first-time buyers leaving London. Lower mortgage payments have pulled the cost of buying back below renting, bringing relief to those looking for their first home in the capital. First-time buyers with deeper pockets are looking again at London.”
Original publication: kensingtonhouse.com, 1 October 2024. The organisations quoted are named in the text; their figures are reported as they stood on the publication date.