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FTB mortgage sales fell across London in decade to 2023: "London is fast becoming a first-time buyer no-zone"

ended 18. March 2025

Several London boroughs saw some of the largest falls in the rate of first-time buyer mortgage sales in the UK between 2013 and 2023. This is according to ONS analysis of data from the FCA which have been published at local authority level for the first time today. Similar trends can be seen in other major cities across the UK, with rates of first-time buyer mortgage sales falling or growing more slowly than surrounding areas. Overall, the South East saw a higher share of new first-time buyer mortgages than London in 2023, with the largest growth in the North East of England and Northern Ireland. Newspage asked brokers for their views, below.



 

11 responses from the Newspage community

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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Given soaring property prices and affordability constraints, the decline in first-time buyer mortgage sales across London and other major cities isn’t surprising. With high deposit requirements and tighter lending criteria, many buyers are looking further afield to areas like the South East, where homes are comparatively more affordable. The growth in first-time buyer activity in the North East and Northern Ireland reflects a shift towards more accessible housing markets. While London remains desirable, without significant intervention – such as improved affordability schemes or increased housing supply – it risks becoming even more out of reach for those trying to get on the ladder.
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Bob Singh
Founder at Chess Mortgages
These stats come as no surprise given the lofty house prices we have in Greater London. Wages have not kept pace and, with lenders not loosening the reins and no Help to Buy scheme, first-time buyers have had to move further afield to buy within their affordability. Working from home or hybrid working practices have meant buyers are prepared to move out of London and travel further into work when necessary. The exodus has been to the Home Counties in areas with good communication links to London. This ripple is unlikely to make its way back to London, which has seen huge increases in rents. Skipton Building Society’s track record mortgage is a great product to help cash strapped buyers get on the ladder.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
London is fast becoming a first-time buyer no-zone. The capital is so expensive that only the most fortunate or well off can afford to buy there. More people are having to move outside the capital as buying anywhere central has become a pipe dream. The affordability challenge for first-time buyers is less pronounced in other regions of the UK where house price growth hasn't been as exponential. Either way, this data underlines the Everest that homebuying has become in some parts of the UK.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
House prices continue to soar, and the new homes that are being built are anything but affordable. Across the capital many are now working remotely or no longer need to live in the city. With higher interest rates putting the squeeze on affordability, it is no surprise to see the number of first-time purchases in London plummeting.
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Mark Eaton
COO at April Mortgages
The decline in first-time buyer mortgage sales across London and major UK cities over the past decade is largely due to affordability constraints. With house prices at record highs, many buyers struggle to secure a mortgage, as most lenders cap borrowing at 4.5 times income. This makes it harder to bridge the gap between property prices and available loan sizes, especially in London and the South East. Getting on the property ladder in the capital is almost impossible on your own and most joint mortgage applicants still require huge deposits. Our own research shows that a couple earning an average salary in the capital would need a deposit of over £200,000 to buy a home in nearly half of all London boroughs. One solution is longer-term mortgages of 10-years or more, which reduce monthly repayments and help borrowers qualify for larger loan amounts. This could improve affordability and enable more FTBs to purchase in high-cost areas, but it won't fix the problem on its own.
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Ben Perks
Managing Director at Orchard Financial Advisers
As house prices rose in London over the last decade it put them far out of the reach of first-time buyers. With rising rents and few mortgage schemes to help, getting a foot on the housing ladder has been an impossible task, but elsewhere in the country the tide is turning and first-time buyers are amongst the most active currently. But will this feed into the capital? Unless mortgage lenders and the government collaborate to make deposits more attainable and property more affordable, I don’t think so.
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Jack Tutton
Director at SJ Mortgages
House prices in and around will continue to push first-time buyers further from London, this will only get worse once the stamp duty thresholds change at the end of the month. With the average house price in London being close to £550,000, the stamp duty changes will cost first-time buyers an extra £11,250 to purchase a property at this price. For this reason, it is not surprising that the South East has attracted more first -time buyers with it being within commuting distance.
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Justin Moy
Managing Director at EHF Mortgages
This 10-year snapshot shows the real effect of the Help to Buy scheme, with it's launch in 2013 making it more affordable to buy a new home, encouraging many first-time buyers to make that jump into homeownership. The withdrawal of the main HTB scheme in 2021 coincided with slower sales and prices that were being pushed beyond the FTB boundaries of affordability. But with the increase of rental costs in the South East over the last 3 years, this has been a significant influence on FTB's purchasing patterns, with mortgage payments often less than equivalent rent payments outside of London.
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Daniel Hobbs
CEO at New Leaf Distribution
The shift among first-time buyers from the capital to the surrounding counties was inevitable given the Olympian heights prices in London have reached. Few can afford to buy there, let alone first-time buyers.
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Steve Humphrey
Adviser & Founder at The Mortgage Pod
We’ve certainly been living in uncertain times, and these figures reflect that. First-time buyers are the backbone of the housing market—without them taking the first step onto the ladder, overall activity slows. Changes to schemes like Help to Buy, stamp duty, and other legislation appear to be having a clear impact. With much of the South of England likely to follow London’s trend, the question is: what’s next for housing? With decreased demand, we can expect increased supply, leading to inevitable house price adjustments. While challenging for some, this shift could bring much-needed affordability to the market.
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Iain Swatton
Director at Exemplar Financial Services
London’s sky-high property prices have inevitably driven many first-time buyers away from the capital, with similar trends emerging in other major UK cities. The rise in remote working has only accelerated this shift, as buyers prioritise larger homes and greener surroundings over proximity to the office. While housing costs may be cheaper further out, the savings can sometimes be offset by higher travel expenses for those still commuting. The absence of any government-backed schemes is also holding buyers back. Help to Buy played a key role in the past, and without a replacement, many first-time buyers are struggling to get onto the property ladder. Despite this, demand remains strong, fuelled by rising rents and mortgage costs—factors that show no sign of easing or triggering a major price correction anytime soon.