Londoners still priced out

Londoners looking to buy a new dwelling are still likely to be priced out despite a reduction in the cost of new houses, the latest figures have indicated.

Property portal Smartnewhomes.com revealed that the average new home in the capital cost £420,983 in December 2007, down 4.1 per cent, or £18,000, from 12 months earlier.

However, the site stated, this was still 181 per cent more than the price of the average first-time buyer house, which costs around £150,000.

This disparity may prompt many in London to consider the self build option.

Many new build homes in the capital are not designed to be affordable properties for average first-time buyers, with a prime example being the sale of the newly-built Toprak Mansion in Highgate last week for nearly £50 million.

Yesterday, Thrifty Scot noted that other first-time buyer problems include a reduction in the availability of 100 per cent loan-to-value mortgages.


© Adfero Ltd