London house prices exceed £300k mark

20-Mar-2006

The average price of a property in London has exceeded the £300,000 mark for the first time as buyer interest has pushed prices through the roof.

This rise means that first-time buyers in the capital are having to borrow up to five times their salary to be able to afford to get their foot on the first rung of the property ladder, according to property group Rightmove.

Aspiring first time buyers wanting advice on mortgages, to find out how much they can borrow and how much it will cost, should request advice from the UK’s leading High Street Brokers, Bradford and Bingley.

There have also been reports of first-time buyers taking out interest-only mortgages to buy a home as they cannot afford the capital repayments on it.

Figures show that house price rises represent a 5.8 per cent on March last year and means that prices in the capital are 50 per cent higher than the rest of the country.

Aspiring first time buyers considering affordable housing options should work with a good mortgage broker

Miles Shipside, Rightmove's commercial director, said: "Buyers wishing to acquire property in the most popular boroughs face increasing competition.

"First-time buyers may have to look outside London to be able to afford their first home."

Stamp duty tax is also becoming an increasing problem for first-time buyers as only 1.8 per cent of properties coming onto the market in London are prices below the 120,000 threshold for the tax.

Tax advice can be sought from the FirstRungNow tax advisor

Aspiring first time buyers applying for shared ownership are advised to consult a good mortgage broker

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