Rightmove say price of London first time buyers (FTB) homes dropped by 5% in 5 years

First-time buyer properties asking prices in London are 5% lower than they were five years ago, but over the past decade they have risen by 55%, analysis by Rightmove has shown.

A two bedrooms or fewer average asking price in London are now £478,068, down from £504,264 in 2016, but up from £307,745 in 2011.

London is the only place where prices have fallen in the past five years.

The steepest increase was seen in the North West asking prices for first-time buyer homes over the last year, with a hike of 9% to £147,963, while over ten years the increase was 30%.

Prices for first-time buyer in Wales experienced a similar boost, up by 8% year on year to £149,337.

Scotland and the North East saw 7% and 6% growth respectively, followed by the West Midlands and Yorkshire and the Humber which each saw 4% annual increases.

The South West and East Midlands have recorded 3% annual growth in first-time buyer prices, while for the East of England and the South East it was 2%.

If the stamp duty holiday is extended until the end of June, Rightmove estimates an additional 300,000 property transactions in England could get through, saving £1.75bn in tax.

But it predicts that 100,000 buyers who agreed a purchase last year are set to lose out, if the deadline stays at March 31.

If the extension were granted, 80% of sales that have already been agreed in England would pay no stamp duty.

There are an estimated 628,000 sales in total still going through the legal process across Britain.

Rightmove’s property expert Tim Bannister says: “We estimate that around 100,000 sales will miss the current March deadline, and so if the holiday is extended to the end of June it would give these the chance to complete in time, plus a number of other sales could now make it through that were only agreed at the start of this year.

“If it is announced this week we’re likely to see a rush of new buyers also trying to make use of the savings, but it’s worth remembering that the huge logjam will mean a new sale being agreed is still likely to take over four months on average to complete, so really an extension for a few months would be an indication that it’s to help those already trying to get their purchases through.”