Research for Mayor of London Sadiq Khan shows first time buyers in the capital are losing out to overseas investors acquiring property.
Despite the property market slowing down this year house prices have unexpectedly rebounded including expensive London.
Manchester house price growth leads the UK while there is a material slowdown in the most unaffordable cities such as London.
Property price growth in London have reduced and is now 3.7% over the year in contrast to a rise in prices on average in the country.
The rate of house price growth has reduced to 6.2% in a year even though moderate UK demand continues to exceed supply.
Hometrack data shows London with the slowest rate of growth for four years and the fastest house price rise is now from regional cities.
Home buyer borrowing in London reduces 5% or £310 million in the final quarter of 2016 continuing the downward trend for the capital.
House prices in the East of England remain strong up 11% over the year despite a slowdown in property sales across the country.