London prices continue to hamper first time buyers' dreams but some boroughs still offer opportunities

• London ranked 43 out of 50 best cities in the UK for first-time buyers (FTBs) in Aldermore’s First Time Buyer Appeal Index¹   
• The most appealing boroughs to buy within London for FTBs are Lewisham, followed by Tower Hamlets, Newham and Barking and Dagenham

Aldermore’s First Time Buyer Appeal Index¹, analysing 50 cities across the UK to help demonstrate the best areas for first time buyers, found London ranked 43 in the list of 50 cities. The Index is a comprehensive study of 50 cities across the UK, ranked by affordability, available housing stock and lifestyle considerations for first-time buyers.

London sits low in the rankings due to high house prices, unaffordable deposit requirements and its limited potential for house price growth which is needed to move up the property ladder. Yet despite this, demand from first time buyers is still high as young workers strive to get a foot on the ladder in the capital. It boasts strong professional prospects, with one of the highest average salaries attracting a high number of graduate workers. This sits alongside enviable lifestyle benefits including an average of 18 pubs and restaurants per 10,000 people. However, it does have the worst commuting time which drags London’s score down.

Hidden gems to be found within London boroughs

Within London, the Appeal Index found the top boroughs to buy according to lifestyle and property appeal are Lewisham, followed by Tower Hamlets, Newham and Barking and Dagenham. Lewisham jumped seven places to first from last year’s Index and Tower Hamlets moved from eleventh to second place.

Westminster (26^th) performs the best in terms of the lifestyle opportunities available, with a diverse range of bars and restaurants to visit, at 102 choices per 10,000 people. Although the property appeal score was low with an average selling price of £841,846 and a deposit required x 8.6 their salary making it basically unaffordable for young buyers.

Aldermore’s Top First Time Buyer hotspots in London:

Jon Cooper, head of mortgage distribution at Aldermore, comments:

“Although London ranks low in our First Time Buyer Appeal Index this year when compared with other cities across the UK, we can’t get away from the fact that it is still a dream for many people to buy in the capital. With its job opportunities, higher than average salaries and a huge choice of culture and nightlife, London is still very appealing.

“At Aldermore, we want to help first time buyers to realise their homebuying dreams and consider what boroughs might work for them. We would encourage prospective buyers to seek expert advice from brokers who can outline their options and work with them to achieve their end goal of getting on the property ladder.”

**Ends**

Notes to editors

Aldermore’s First Time Buyer Appeal Index 2023 Top London Borough Ranking Table:

¹ Aldermore’s First Time Buyer Appeal Index was designed by Opinium and comprises 10 key indicators across two pillars. The index uses a series of secondary data sources including ONS, Census, NOMIS and other official housing statistics.

• Property Pillar indicators:

1. Average FTB selling price
2. Average increase in FTB price
3. FTBs as a share of sales
4. Average FTB deposit/x average income

• Lifestyle Pillar indicators:

1. Percentage of population aged 25-35
2. Average commute time
3. Restaurants and pubs per 10 thousand people
4. Average life satisfaction
5. Percentage of workforce graduates
6. Average full time pay

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