For anyone thinking or wanting to buy their first home in London, it may feel like an almost impossible task. But it might surprise you to know that the number of people buying their first home in London is actually quite robust, despite the current considered ‘high’ mortgage rates for first time buyers of just over 5 to 6% in June 2026.
As the chart below shows, first-time buyers in London spiked during the pandemic, then fell when rates initially rose, but as they have been assessed at higher rates and are on repayment mortgages, they haven’t been as impacted as they would have done if their affordability had been assessed based on actual mortgage rates.
Overall, the 2024 average of 41,500 in 2024 is below the last major recession, but since the market recovered and up to the pandemic, the average is around 40,000 purchases – so our current average is pretty good and continues to rise:
Average annual first-time buyer purchases in London
Pre-credit crunch (2006–2007): 57,545
Recovery period (2013–2019): 40,258
Post-pandemic (2021–2024): 44,402
Source
Where are first-time buyers in London buying?
Based on the figures for each Local Authority, the top 10 areas where FTBs were actually buying (2021-2024) were:
1. Wandsworth
2. Croydon
3. Lambeth
4. Lewisham
5. Tower Hamlets
6. Greenwich
7. Waltham Forest
8. Bromley
9. Havering
10. Ealing
Source
The reason for these areas being higher than the other Local Authorities appears to be increased levels of new build and regeneration. Wandsworth for example has benefited from developing Nine Elms and Battersea Power Station, along with regeneration of Clapham Junction. Lambeth similarly has a combination of the regeneration around Vauxhall and Oval, while also being relatively affordable.
Croydon on the other hand is relative affordability compared with Inner London while having really good transport link via rail, the tram and bus links, making it quick and easy to get pretty much anywhere across London or beyond.
Looking to the future, although there are always personal reasons to buy in an area, such as being near to work, family, friends and hobbies. Here’s four areas we’d consider looking at to buy your first home, and the reasons why.
Woolwich – London's regeneration success story
Woolwich has arguably undergone one of the most dramatic transformations in London over the past decade and combines some of London's most significant regeneration with Elizabeth Line connectivity, making it one of the capital's strongest value-for-money locations for first-time buyers.
Why first-time buyers are looking here:
• Elizabeth Line has cut journey times to Canary Wharf, the City and the West End.
• Extensive regeneration around Royal Arsenal Riverside.
• Significant pipeline of new-build homes, including affordable and shared ownership options.
• Buyers can often secure a larger property than in comparable Zone 2 and Zone 3 locations.
Greenwich – heritage, connectivity and relative affordability
Greenwich offers first-time buyers a rare combination of character, green space, riverside living and strong transport connections, while remaining more accessible than many established inner-London markets. It has a lovely feel of being a large ‘village’ with great local shops and eateries as well as familiar national brands.
Why buyers are looking here:
• Attractive town centre and riverside setting.
• DLR, rail and Elizabeth Line access via nearby stations.
• Ongoing regeneration around Greenwich Peninsula.
• More affordable than many neighbouring parts of South East London.
Canary Wharf / Docklands – no longer just for City professionals
This has always been seen as a market for investors and financial services workers, but as it becomes more established, Canary Wharf is increasingly attracting buyers and home owners from a broad range of Londoners. Improved transport, extensive amenities and a growing residential community have helped Canary Wharf evolve from a business district into an increasingly attractive destination for first-time buyers.
Why buyers are looking here:
• One of London's best-connected locations thanks to the Elizabeth Line, Jubilee Line and DLR.
• Large supply of modern apartments.
• Growing retail, leisure and residential offer.
• Increased flexible working means buyers can prioritise quality of housing and amenities rather than being within walking distance of an office.
Deptford / New Cross – the affordability and lifestyle play
Deptford and New Cross continue to attract first-time buyers seeking a balance between affordability, connectivity and lifestyle, while benefitting from wider regeneration across South East London.
Why buyers are looking here:
• Close to London Bridge, Canary Wharf and the City.
• Strong rail, Overground and DLR links.
• Creative and cultural reputation driven partly by Goldsmiths, University of London.
• Ongoing regeneration and housing investment.
• Generally more affordable than neighbouring areas such as Bermondsey, Canada Water and parts of Greenwich.
While each location offers something different, Woolwich, Greenwich, Canary Wharf and Deptford/New Cross share several characteristics that are increasingly important to first-time buyers. All benefit from significant transport investment, ongoing regeneration and access to employment centres, while offering better value than many traditional first-time buyer hotspots.
Affordability will always be a stretch in any capital city and with over 30 boroughs to choose to live, there are lots of places where first-time buyers can look at buying, but hopefully knowing the top areas where people are buying currently and with our suggestions of similar areas to look at, this gives first-time buyers a good starting place to search for your first home!
If you want some advice on locations in your budget, get in touch with your local branch and our sales experts will be happy to have a chat with you.
