Starter home prices in London drop as first-time buyers seek out smaller, cheaper homes

Soaring house prices, stamp duty changes and large deposits are pushing first-time buyers in London to search for cheaper homes than previously, new analysis from Zoopla shows.

Whereas first-time buyers across the country tend to look for homes valued at 15 per cent below the average house price in their area, those in the capital are searching for properties which are 21 per cent cheaper.