First time buyers are still paying more despite falling London house prices, a report has revealed.

Analysis by Gatehouse Banks, a home finance provider company, reveals falling house prices in London are failing to help first time buyers.

The data shows house prices in popular areas with first buyers has risen 4.3 percent despite house prices dropping by 1.9 percent across the capital on average.

Average London property values have been falling on an annual basis since March last year and has managed to decrease by 1.92 percent March 2019 – down from £472,357 to £463,283.

But some of the most affordable areas in London which are attractive to those buying their properties such as Barking, and Dagenham have seen a rise in the average price paid by first time buyers by 2.91 percent – up from £276,701 to £284,751 in the same period.

Other parts of the capitals to see a rise were Richmond Upon Thames at 2.12 percent and the City of London up to 16.24 percent.

In Enfield, the average price of housing for first time buyers in 2018 was £350,836 to £349,242 in 2019 (0.45 percent decrease).

In Waltham Forest, the average housing price was at 420,658 to 414,460 in 2019 (decreased by 1.47 percent).

For homes in Redbridge, the average price has decreased from 366,614 in 2018 to 354,426 in 2019 (decrease by 3.32 percent).

In Harrow, prices have decreased by £398,632 to 384,940 in 2019 (decrease by 3.43 percent).

And in Barnet, prices decreased by £449,762 to £428,604 in 2019 (decrease by 4.70 percent).

CEO of Gatehouse Bank Charles Haresnape said: “The trend for the London property market over the last year has been all about falling prices and most people would expect the one silver lining to be that first-time buyers would find it easier to get on the housing ladder.

“Sadly, that’s not the case. It is counter-intuitive but in many areas popular with first-time buyers, the situation is getting worse.

“It could be that the shortage of affordable housing for first-time buyers is forcing up prices in areas where it is generally cheaper to get on the housing ladder.

"This continuing disparity means first-time buyers are experiencing a two-speed London, with prices moving in different directions as you cross borough boundaries.”