FTBs paying more despite house price decline

House prices in London have risen 4.3 per cent in areas popular with first-time buyers, despite an average decline of 1.9 per cent in house prices across the capital, according to Gatehouse Bank.

Average house prices in Hackney rose 5.4 per cent in the year to March. This was followed by Newham at 4.87 per cent, and Merton at 3.61 per cent.

In contrast, Kensington and Chelsea saw average house prices decline by 16.69 per cent, in the same time frame. City of Westminster followed, falling by 14.09 per cent, and Camden dropped 9.48 per cent.

However, City of London did increase by 16.24 per cent, which the firm accounts to low sales volumes.

The average property in London, as of March 2019, was recorded at £463,283.

Gatehouse Bank chief executive Charles Haresnape says: “The trend for the London property market over the last year has been all about falling prices and most people would expect the one silver lining to be that first-time buyers would find it easier to get on the housing ladder.

“Sadly, that is not the case. It is counter-intuitive but in many areas popular with first-time buyers, the situation is getting worse.

“A young couple hoping to buy in Hackney today would have to find an extra £27,310 to purchase a property compared to a year ago.

“It could be that the shortage of affordable housing for first-time buyers is forcing up prices in areas where it is generally cheaper to get on the housing ladder.

“This continuing disparity means first-time buyers are experiencing a two-speed London, with prices moving in different directions as you cross borough boundaries.”

Recommended

Gatehouse Bank creates new position

Gatehouse Bank has promoted Sim Gill to the newly created position of national key account manager. The responsibilities of the new role involve coordinating operations with key broker partners and working closely with the business development managers at the bank. Gill has been at Gatehouse Bank for a year and a half, having worked his way […]

Handshake-Business-Finance-Deal-Corporate-700.jpg

Gatehouse Bank hires three case managers

Shariah-compliant lender Gatehouse Bank has appointed three new case managers following the launch of its home purchase products last week. Georgina Taylor, Sinead Hendrikse and Tyler Sullivan have been hired as case managers on the home finance operations team. Taylor previously held a number of roles at Connells and was most recently a product analyst for Countrywide, […]

Property-Building-Growth-House-Housing-700x450.jpg

Gatehouse Bank issues new commercial property products

Gatehouse Bank has announced the launch of a series of new commercial property finance products aimed at businesses and investors. The lender is targeting those interested in acquiring or refinancing commercial property and mixed use or owner-occupied commercial premises through loans of between £500,000 and £2m. The new offerings – commercial investment, semi-commercial, and owner-occupied […]

Newsletter

News and expert analysis straight to your inbox

Sign up