Zoopla’s latest figures show London lagging behind other regions, with homes taking longer to sell and buyers increasingly cautious in the face of higher borrowing costs.

New affordability analysis by Skipton Building Society explains why London continues to feel the strain, with high deposits and living costs making it harder for many buyers to get onto the ladder.

Charlotte Harrison, CEO of Homes at Skipton Building Society comments:
“London’s market continues to operate under much tighter affordability constraints than the rest of the country. Even as prices stabilise, buyers here feel cost pressures far more acutely, which is reflected in slower sales and more cautious behaviour.

The Skipton Group Home Affordability Index highlights how challenging the picture remains. Our data shows that average first‑time buyer deposits in the capital are equivalent to around 140% of annual household income, and high living costs make it harder to save. For renters, the situation is particularly strained, with over 60% in the least affordable areas of London facing high housing costs.

Until these underlying affordability pressures ease, price stability alone won’t be enough to improve access for many first‑time buyers in the capital. Supporting homeownership in London will require ongoing collaboration from lenders and the wider industry, with a focus on flexible solutions that help people take that first step onto the property ladder.”