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New data reveals depth of first-time buyer struggle

According to recent data from Lloyds, the average first-time buyer purchase price in the capital (for both new-build and second hand homes) has reached an all-time high at £405,106, while the average mortgage is now £317,253 equating to mortgage repayments of £1,386.13 per month. Some basic number crunching reveals that an individual or combined income of £80,000 per annum is now required to purchase the average first-time buyer home without Help to Buy.

For those looking to get their foot on the property ladder, the research identified Barking and Dagenham (£205,866), Havering (£292,446), Bexley (£324,910), Croydon (£341,326), and Enfield (£352,764) as the most affordable London boroughs. Within these boroughs, Barking and Croydon are the best connected with the fastest journey times into central London (Zone 1). Trains from Barking to London Fenchurch take just 14 minutes, while trains from East Croydon to London Victoria take only 16 minutes.

At Inspired Homes, we’ve taken time to understand the struggles first-time buyers endure and tailor our product suit affordability. Based on the average London salary, we think the typical first-time buyer is realistically able to afford between £750 and £1,000 per month on living expenses.

With a typical Inspired home in Croydon costing around £300,000, being a new home, our purchasers can benefit from a 40% Help to Buy London Equity Loan meaning that they would only need a mortgage for £165,000. With banks able to lend up to 4.5 times household income, based on a 30-year term at a typical 1.99% interest rate, the purchaser could expect monthly repayments of around £600 per month. With bills, ground rent and service charge, purchasers can expect total monthly outgoings of £800-£900. This is more than a third less than the average London mortgage repayment of £1,386.13 before bills and other living expenses are included.

To find out more, speak to a member of our team 0208 688 6552 or email

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