First-Time Buyers Dominate London’s Housing Market: A Positive Shift for 2024

At Antony Pepe, estate agents in Winchmore Hill, we’re excited to share a promising trend in the London housing market. New data reveals that almost half of house hunters in the capital in 2024 were first-time buyers. According to an analysis by Hamptons, 48% of all purchasers in London between January and June were first-time buyers—the highest proportion since at least 2010, when records began.

This is a significant leap from 41% in 2023 and 28% a decade ago, reflecting the growing confidence among first-time buyers in London. The availability of more affordable mortgage rates has played a key role in this shift, making the dream of owning a home in the capital more attainable.

Mortgage Rates Fuelling the Trend

Falling mortgage rates have been a game-changer for buyers. First-time buyers, on average, spent £443,550 on their homes in London this year—an increase of £39,360 compared to last year. The head of research at Hamptons, Aneisha Beveridge, noted: “Lower mortgage payments have made buying more affordable than renting for many, drawing first-time buyers back to the capital.”

Stamp Duty Savings Boost First-Time Buyer Confidence

Further fuelling the surge in first-time buyers is the ongoing stamp duty relief. Thanks to a temporary government initiative introduced two years ago, first-time buyers in England and Northern Ireland don’t pay stamp duty on properties costing up to £425,000. This has been a huge incentive, especially for London buyers, where 43% of first-time buyers have spent more than £425,000 on their homes this year.

Although the current relief is set to expire in 2025, this could encourage even more buyers to take advantage of the savings in the coming months, particularly in London and the South East, where property prices tend to be higher.

Slower Exodus from London

The appeal of London remains strong; people are returning to the city centre rather than the outskirts with the data showing a slower exodus of residents to other parts of the country compared to previous years. During the first half of 2024, 33,130 homes were purchased by Londoners outside the capital, a similar figure to 2023 but significantly down from the pandemic peak of 100,910 in 2022.

A Bright Future for First-Time Buyers

With mortgage rates continuing to drop and forecasts suggesting they could fall to as low as 3.5% for a five-year fixed-rate deal by the end of 2024, it’s an exciting time for first-time buyers. As more affordable mortgage options become available, especially for those with larger deposits, London’s property market is set to remain accessible to new buyers.

Contact Anthony Pepe, Estate Agents in Winchmore Hill

At Anthony Pepe, we’re here to help you navigate the exciting opportunities this market presents. Whether you're a first-time buyer ready to make your move or a homeowner thinking of selling, we’re committed to helping you achieve your property goals.

Whether you want a Crouch End letting agent, a home for rent in Winchmore Hill, or are interested in residential home sales in Haringey, we will be able to help. Contact us by following this link and filling in the online form.

Adapted from the Guardian