Cheaper mortgages and a desire to escape sky-high rents have brought first-time buyers back to London in droves, new figures reveal.

48% of house hunters in the capital at the start of this year were taking their first step on the property ladder, according to estate agent data analysed by Hamptons. That’s the highest proportion since at least 2010, and a significant jump from 41% in 2023 and just 28% a decade ago.

So, what’s behind this London comeback?

Experts point to falling mortgage rates, which have boosted buyers’ budgets, as a key factor. The average first-time buyer in London now spends £443,550 on their first home – that’s a considerable £39,360 more than last year, showing just how much these lower rates are increasing buying power.

Is London suddenly affordable?

While London prices are still high, the shift comes down to more than just cheaper borrowing. Aneisha Beveridge, head of research at Hamptons, explains, “Lower mortgage payments have pulled the cost of buying back below renting, bringing relief to those looking for their first home in the capital.”

In other words, for many, getting on the property ladder in London is finally becoming a more attractive option than renting.

Where are these first-time buyers heading?

Beveridge observes a trend towards popular areas within the capital: “First-time buyers with deeper pockets are looking again at London, choosing Clapham over Crawley and Wembley over Wycombe.”

What about those leaving London?

The data also shows that the mass exodus from London, sparked by the pandemic, is losing steam. While 76,000 homes outside the capital are expected to be snapped up by Londoners this year, that’s down from a peak of 100,910 in 2022.

What about the future?

With experts predicting further mortgage rate drops in the coming months, this renewed interest in the London market could continue. However, looming changes to stamp duty, which could see the threshold for first-time buyers drop back to £300,000 in 2025, might encourage some buyers to act sooner rather than later.