Borrowing by first-time buyers in London hits highest level for 10 years

Due to the price of real estate in London, young professionals have had difficulty buying housing. The number of loans of this particular group has risen three percent for this year. In London, a typical person buying a house borrowed £250,000, compared to those in the same group only borrowing £139,000 in the UK overall. Salaries are also up: Average household income rose from £66,961 to £67,737 over the course of three months. Borrowing for homes has risen but is still not close to where borrowing was in the first quarter of 2016.

Key Takeaways:

High prices in London are hitting first time home buyers hard.
Home buyers in London are having to borrow more money than average as they enter the housing market.
Sky rocket housing prices in London make affordability a real challenge.

“A typical first-time buyer borrowed £275,000 in London, as compared to the UK average of £139,000.”