However, Hamptons latest analysis of Countrywide estate agency data points out, this year’s figure has been capped by falling mortgage rates and lower house prices. This has enabled more people to stay in the capital to buy their first home.  In fact, first-time buyers purchased a record 48% of homes sold in London so far this year, up from 41% in 2023 and 28% a decade ago.

The impact of lower mortgage rates on the spending power of first-time buyers has been significant.  The average first-time buyer purchasing in London spent £443,550, £39,360 more than last year.  This increase in purchasing power, coupled with falling prices across the capital, has allowed more affluent first-time buyers to purchase larger homes in more sought-after areas.

This shift means that the average London first-time buyer with a 15% deposit would spend £2,070 a month on their mortgage repayment, £273 less a month than if they bought in the first half of 2023.

Despite improving affordability conditions, purchasing a home in the capital is still prohibitively expensive for many would-be first-time buyers.

First-time buyers leaving the capital are increasingly seeking out more affordable areas closer to London rather than moving further afield.  The average first-time buyer leaving London moved 23.8 miles this year, 2.6 miles less than last year.  With people spending more time in the office, the share of first-time buyers leaving London for the countryside has halved from its 6% peak in 2020.

Commenting on the latest figures Hamtons head of research Aneisha Beveridge said: “Falling mortgage rates are starting to turn the tide on the rising number of first-time buyers leaving London.  Lower mortgage payments have pulled the cost of buying back below renting, bringing relief to those looking for their first home in the capital.  First-time buyers with deeper pockets are looking again at London, choosing Clapham over Crawley and Wembley over Wycombe.

Beveridge added: “Four years on from the pandemic and many city workers have settled into a new normal when it comes to going into the office.  First-time buyers are more likely to stay closer to London than they have been over the last few years.  Keen to retain their links with the capital, this has put the more affordable M25 towns firmly back on the map for younger homeowners.”