Research for Mayor of London Sadiq Khan shows first time buyers in the capital are losing out to overseas investors acquiring property.
The rise in property values for the East of England are leading the market with new-build homes seeing a 32% price increase in the last year.
Lending to first time buyers and home movers decreased in July and recovered in August despite fear of a crash after the Referendum.
Uncertainty with the EU Referendum has seen London house prices stall increasing by 0.2% for the month to June down from 1.5%, says ONS
House prices for new-build properties have risen by 17.9% for the year, double the rate of existing with highest growth in the South East.
Rics June survey has shown a significant decline in the number of new buyers as uncertainty remains after the EU referendum.
Lending to home movers increased by £800 million or higher by 18.6% for the month as other buyer types lag behind during May.
The lowest ever ten year fixed rate mortgage deal at 2.39% is launched by the Coventry Building Society after EU referendum.
The rate house prices are rising has slowed ahead of the EU Referendum with greater uncertainty expected from the Brexit vote.
There has been a 20% fall in demand for new-build homes and interest in the London housing market due to the EU Referendum.