According to official figures, January saw a sharp slowdown in London’s property market. This was due to a spike in autumn prices. Prices in Richmond rose 12.4 percent, Barking & Dagenham saw a 10.6 per cent rise, and Tower Hamlets saw prices fall 5.1%. However, some boroughs are still experiencing strong year-on-year growth. Prices in Richmond rose 12.4 percent, Barking & Dagenham saw a 10.6 percentage increase, and Tower Hamlets saw a 5.1% drop. Yopa’s chief analyst Mike Scott said that London is still growing slower than the rest of the nation, with only 2.2 percent growth. This is partly due to London workers being more mobile and able to work from home. It also continues a trend that began in 2016, when London’s house prices grew much faster than the rest of the country. “Detached houses saw the largest fall, just over 3 percent, reversing a trend that began in 2016, when London workers were able to live further from the office. Also, Savills, an estate agent, warned of a housing affordability crisis by comparing annual house price increases with average salaries. READ MOREThe average UK house price rose by more than GBP24,000 last year, while the average wage rose by GBP31,285 by 2021. This means that the average home value increased by 77% of gross earnings. READ MOREThe average UK house price rose by more than GBP24,000 last year. The Bank of England’s new mortgage affordability tests are now available. What does this mean for first-time buyers and house prices? Rising interest rates and rapid house price growth are creating a storm for first-time buyers. We expect the housing market to become more polarised with the end of Help to Buy in a year. This is because it will be harder for those whose parents are able to afford to help them get on the housing ladder. “Aspiring home-owners will be keeping an eye on the government to see what support they can get to keep their dreams alive.