Home purchases in London fell in 2014 in comparison to 2013, but first time buyers increased in the capital by 7%. Property mortgages in London accounted for 21.5% of total in the UK in 2014 in comparison to 22.6% of the overall total in 2013.  Home movers amounted to 37,000 mortgage loans which was a decrease of 1% from 2013.

Andrew Bridges, managing director of Stirling Ackroyd, remarked, “Mortgage lending is only one aspect of matching people to places in London, especially in a city where half the population rents their home.

“London is at the epicentre of a roaring jobs market - an economic turbine hauling the rest of the UK into the future. As a direct result, homes in the capital are in serious demand. That whirlpool is particularly concentrated London areas where the newest industries and technologies are taking off.

“A slight slowdown in the final quarter of the year is normal - and more recently, at the front end of the home purchase process, we're seeing steadier demand from both buyers and tenants through the first quarter of 2015. It's also worth putting any seasonal dip in mortgage lending in context. Three times as many Londoners became new homeowners in the fourth quarter of 2014 as struggled to become first-time buyers back in the depths of early 2009.

“Looking ahead, a gathering demand for commercial property space in London is a strong indicator that the capital's economy will continue to grow and evolve for the better - and that residential demand won't fall away soon.”

As the demand for London property declines, other areas are increasing and contributing to the overall average house price for the UK. The latest data from Halifax in their house price index indicated that the average house price for the UK and Wales is England and Wales is now £192,372.