First-time buyers (FTBs) climbing on the property ladder in London went up by 24% in 2022/2023, reaching a 20-year high with 181,000 securing their place, research by Benham and Reeves reveals.
The analysis, which focused on the latest government figures on FTB market activity, found that London’s FTBs don’t need to be incentivised to get a foot on the ladder, with market activity having increased notably of late.
While this is the case, the upcoming election has seen the Conservatives pledge to scrap stamp duty on purchases up to £425,000, while Labour will give FTBs first dibs on new development homes ahead of investors.
The average age of a FTB in London during 2022/2023 was 35.3 years old, up from 33.8 years the previous year and 32 years old two decades ago in 2003/2004.
Meanwhile, the research reveals that London’s FTBs accounted for 21% of total FTB market activity seen throughout the year – the largest proportion seen since 2014/2015 and the fourth largest in the last 20 years.
In contrast, the number of FTBs outside of London fell by -1.8% on an annual basis, marking a second yearly drop, with the 693,000 who did get a foot on the ladder also being the lowest total since the pre-pandemic market in 2019.
Benham and Reeves director Marc von Grundherr says: “It’s quite remarkable that despite London boasting the highest house prices in the land, and with the additional complications of higher mortgage rates, the level of FTB activity seen of late has increased drastically.”
“This has no doubt been helped by the fact that London property values have cooled, presenting a great opportunity for those looking to climb the ladder. But it also demonstrates the desirability of London among buyers and it is this desirability that makes it one of the most resilient property markets on a global scale.”
“So while we may now see a great deal of political pandering to FTB in the lead up to the election, the outcome is unlikely to influence the momentum that has been building across the London market when it comes to those making their first bricks and mortar purchase.”
