Buying in London 'too depressing to contemplate'
With the average house price in London now typically more than £400,000 many first-time buyers have been priced out the market.
Here some of those trying to buy in the capital tell their stories.
Meg Jorsh, 30, lives with her fiance in Beckenham, south London.
They have been saving up for 18 months but house prices have risen so much she is considering moving to Manchester to get more for her money.
She said: "A friend of mine just bought a really nice three-bed semi for £120,000. If we moved there too we might even be able to get a place with a garden.
"I just feel like there's no point in us even applying for a mortgage in London as we're not going to be able to get a place that would be nice to live in even though we're not earning too badly.
"It would either be a tiny little depressing council flat and we would probably wouldn't be able to afford it.
"It's just too much of a depressing prospect to contemplate. "Eventually they'll be no young people left living in London, except the rich ones, as no one will be able to afford it."
Jonathan Wild, 23, is orginally from Manchester but rents a flat in Kennington, south London.
He already has a decent deposit saved up but still cannot afford to buy as prices currently stand.
He said: "I could afford to buy outside of London but that's not where I want to live.
"I've even stopped looking because prices are rising so quickly.They have to come down soon.
"And I'd rather wait until they do than buy somewhere in an area I don't want to live just because that's all I can afford. Even then I'll still have to use the help-to-buy scheme.
"A two-bed ex-council flat near me went for £525,000 the other day in a pretty grim building. It's just ridiculous."
Rachel Musk, 27, from Chertsey in Surrey, says house prices have gone up £100,000 in London in just two years.
"A house we originally viewed when we were looking two years ago was priced at £250,000 but it has just sold for £340,000. It's absolutely crazy."
Lettings agent Rachel said she has noticed a sharp increase in the number of people wanting to rent because of it.
She said: "Even in the last couple of weeks the rental market has increased dramatically."