However, the number of first-time buyers leaving London remains high. Over the past decade, the proportion of Londoners buying their first home elsewhere in the country has shot up from 17pc to 30pc.
Waverley, Stroud and Horsham are some of the most popular areas for Londoners buying their first home, according to Hamptons.
Affordability is a major factor. Despite falling mortgage rates, the typical first-time buyer with a 15pc deposit is paying a record £642 a month less than someone buying in London.
The average house in London costs £523,000 compared to £305,000 for the rest of England, according to Land Registry data.
Mortgage deals have broadly become cheaper since the Bank of England cut interest rates from 5.25pc to 5pc in August, with the best rate on the market currently below 3.8pc. However, the cheapest deals often come with a high upfront fee.
Mortgage rates are still high compared to the historic lows seen a couple of years ago, and markets are pricing in just one more rate cut before the end of the year. Capital Economics is predicting the Bank Rate will fall to 3pc by the end of 2025.