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.”