Aldermore reveals best London hotspots for first time buyers

Aldermore’s First Time Buyer Appeal Index¹ found that London ranks 44^th in the list of 50 cities across the UK.

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, often unattainable 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 the highest average salary (£43,623) among all cities. As such, it attracts a high number of skilled workers, with 68% of the workforce regarded as highly skilled.

This sits alongside enviable lifestyle benefits including an abundance of local amenities, with an average of 17 pubs and restaurants per 10,000 people. However, London does report the worst commuting times which drags its 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 Hounslow, followed by Lewisham, Barking and Dagenham, Southwark, and Tower Hamlets. Hounslow jumped four places to 1^st place from last year’s Index and Hammersmith and Fulham moved ten places from 28^th to 18^th this year.

Barking and Dagenham performed the best out of all London boroughs in the property pillar, with an affordable average selling price for first time buyers (£328,068), healthy house price growth (3.3%) and lower deposit requirements (£88,128).

Meanwhile, Islington (12^th) offered the best lifestyle opportunities among all London boroughs, with a diverse range of bars and restaurants to visit, at 35 choices per 10,000 people and first time buyers here earn one of the highest salaries (£46,665). However, its property appeal score wasn’t as favourable, with less affordable average house prices (£652,947) and more meagre house price growth of 1.1%, making long term property prospects less appealing for young buyers.

Jon Cooper, director of mortgages at Aldermore, said, “Although London ranks low in our First Time Buyer Appeal Index this year it remains a dream for many young people to buy in the capital. With its job opportunities and higher than average income alongside the culture and nightlife, London is still very appealing.

“However, first time buyers should consider their options and investigate which boroughs are attainable. Some will be more affordable, while others offer better lifestyle prospects but are more expensive.

“At Aldermore, we help first time buyers to realise their homebuying dreams by digging into the detail of each individual application, in order to better understand a borrower’s financial picture rather than following a “computer says no” style approach.”