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.
The housing market has recorded its third consecutive monthly fall in house prices for May, the first time this has occurred since 2009.
Manchester house price growth leads the UK while there is a material slowdown in the most unaffordable cities such as London.
The number of first time buyers increased by 30% in the last month with demand expected to continue with attractive mortgage deals.