London property growth 'adds pressure' to first time buyers

04-Jan-2007

House prices in London are continuing to pressurise the finances of first time buyers looking to purchase in the UK's capital city, research suggests.

According to a quarterly study by Nationwide Building Society, house prices in London are growing at an annualised rate of 11.3 per cent, with first time buyers now facing average property prices of nearly £270,000.

For the final quarter of 2006, house prices in London increased by 4.1 per cent.

First time buyers dismayed by another increase in property prices should seek out those companies setting up to help them find bargains.

"The price of houses in London continues to dwarf those in other parts of the country," said Fionnuala Earley, an economist for the Nationwide Group.

"A typical house in Greater London increased by more than £70 per day, compared with the UK average of £40 per day," she added.

Indeed outside of London, annual house price growth was lower at 9.3 per cent, increasing property prices to around £172,000.

For advice on first time buyer mortgages or to find out how much you can borrow and how much it would cost you, contact a good mortgage broker.

Nationwide offers a range of fixed-rate and tracker mortgages for first time buyers and repeat purchasers.

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