As housing affordability in the capital worsens, the deposit required for a first time buyer to buy a house in London has reached record levels.

The typical deposit required by a first-time buyer in London is around £142,588, which is about 2.5 times as much as the amount needed elsewhere in Britain (£58,000.) Savills' analysis shows that the cost of a property for a first time buyer is 85 percent higher in London, at £469,740, than it is nationally, £253,417.

London's house prices are still rising despite a tepid property market. Rightmove only revealed this week that asking price in London rose by 1.8% in September. This was the largest increase in any region. Two base-rate reductions expected for November and December will only boost sales and prices during the winter. Many Londoners who are working and trying to purchase their first home wonder if the Budget will give them a boost on the housing ladder.

New home maths don't add-up

In July, the new Labor government set aggressive housebuilding goals, which more than doubled London's annual rate of construction, from 35,000 to 80,000. Property industry experts welcome the return to hard targets to help address the shortage of supply. However, this ambitious goal is 114% higher than recent average.

No news is bad News

The industry needs to take proactive measures to address the affordability crisis and the tenants trapped in paying high rents and not being able to save the large deposits that are required.

The future is not getting better, but worse

Stamp Duty has been viewed by many as an unfair tax that discourages households from selling, downsizing, or upsizing. Rumours claim that the Chancellor plans to reverse stamp duty discounts set by the Conservatives. The nil-rate of stamp duty for first time buyers will be applied from £300,000.

There will be no regional variations despite the vast difference in house prices between London, the rest of the UK and London.

Rightmove estimates that 25% of London properties are priced below £425,000 but only 8% are priced under £300,000. Hamptons found that currently, 37 percent of FTBs pay stamp duty to London. By next April, this number will be 71 percent.

What can aspiring homeowners expect?

Freedom to Buy is the new name for the mortgage guarantee program, which was launched in 2021. The state guarantees lenders for 95 percent of mortgages, so first-time buyers only need to pay a 5 per cent deposit instead of a 10% one.