Capital’s first time buyers need greater share of housing pot, says London Councils

London Councils welcomes the announcement in the Budget that first time buyers will be helped onto the property ladder - but questions remain over just how many people in the capital will see the benefit.

Analysis by the organisation shows that as a result of higher house prices in London, at least 75 per cent of the Chancellor’s pot must come to the capital to make any real impact on helping first time buyers. An average house for a first time buyer in London is around £285,000 – more than twice the cost of a home in the north east.

More than 32,600 new homes are needed annually in the capital, where many thousands of homeless families live in temporary accommodation.

An additional figure of £4 billion worth of cuts nationally has already been announced to funding for building affordable rented homes and this new pot for first time buyers will not counterbalance the effects of these cuts.

If London were to get 75 per cent of the new pot – the equivalent of £157.5 million – that would help some 5000 Londoners.

London Councils executive member for housing, Mayor Sir Steve Bullock said:
"Any money from the Chancellor towards helping Londoners get onto the property ladder is welcomed by London’s boroughs - but questions remain about how just how many people will be helped in reality.

“The pot must be seen in the context of the capital’s high housing prices, the struggle that young people in particular have to get on the housing ladder, and the £4 billion that has already been cut from the pot for building affordable rented homes.”