Buying a house in London can feel as an impossible dream but a brand new report shows property prices in three quarters of the capital's boroughs have fallen in the last year.
The latest Rightmove House Price Index reveals asking prices in 24 London boroughs have fallen by as much as 6.7% year-on-year – while only eight areas have experienced prices rise or remain static.
Which? reveals where London house prices are cooling and also the help available if you wish to purchase a home within the capital.
What's happening to London house prices?
The average price of a property visiting the market in Manchester has jumped 3.4% in February, as those who own higher-priced property prepare for the spring selling season.
However, regardless of this large monthly rise, the less volatile annual rate of change shows a year-on-year fall in asking prices of 2.1%.
It's remember this, though, the Rightmove data on prices tells just one part of the story with regards to house prices in London and also the rest of the UK.
Asking prices represent what sellers want their property to market for, but won't necessarily be what buyers are willing to pay – and you'll have the ability to negotiate a level cheaper deal.
To see what properties are selling for, it's also wise to keep an eye on the UK House Price Index which collates house sales data from HM Land Registry, Registers of Scotland and Land and Property Services Northern Ireland and is calculated by the Office for National Statistics.
Where London housing prices are falling
The table below reveals the 24 boroughs where asking prices have fallen – and also the eight where they have stayed the same or gone up.
The details are ordered by annual percentage change, however, you can order the table by monthly change or average property price by hitting the column header.
Asking prices within the London borough of Lambeth have experienced the sharpest fall at 6.7% in a year but the average cost of a rentals are still an eye-watering lb601,368.
The cheapest London borough is Barking and Dagenham, based on the Rightmove data, in which a typical rentals are costing lb307,290 and prices have dipped 2.9% within the last year.
How London house prices compare
London house prices are notorious to be higher than the national average.
Typically, a home coming onto the market within the capital cost lb614,182 in February compared with lb148,576 in Scotland.
You can compare prices over the regions of the united kingdom within our map below.
How to purchase a house in London
If you need to buy a home in London, it may be difficult to obtain a big enough deposit or be in a position to borrow enough according to your income.
But there are a number of schemes that could help you produce it happen.
The London Help to Buy scheme, for instance, offers first-time buyers and home-movers buying a new-build home in the capital an equity loan worth up to 40% of the property's value (compared with 20% for all those buying beyond London).
You’ll need to pay a first deposit worth a minimum of 5% and take out a Help to purchase mortgage covering the remaining 55% from the property price. If you wanted to buy a house for lb400,000, you’d need:
Alternatively, you could utilize the shared ownership scheme, which lets you buy a share of between 25% and 75% inside a property and pay rent around the remaining share.
You may also be able to make use of the growing selection of 100% guarantor mortgages. With this type of mortgage, you don't need to possess a deposit, just a guarantor that offers to meet repayments if you cannot.
