You could get onto the property ladder in Kensington with a deposit of just £22,000: Tiny flat in London's poshest borough is on the market for £145,000

• e-mail

With average house prices in London standing at more than £650,000, stepping onto the capital's property ladder is a distant dream for many aspiring first-time buyers.

The deposit alone would need to be almost £100,000 based on someone borrowing 85 per cent of the value of a typical property.

But this month, a newly advertised property for sale suggests that it could be possible to buy a home in the centre of the capital, the fabled 'zone one', with a deposit of only around £22,000 - although, that comes with a few hurdles to jump as explain below.

It is significantly under the average first-time buyer deposit needed in London of £82,000 as cited in figures by Nationwide Building Society.

The studio flat is in London's exclusive Kensington and is for sale on property website Zoopla for £145k

Nationwide has published figures showing the average homebuyer deposits this year, based on 20% of first-time buyer house prices

The property for sale is in London's exclusive Kensington, home of royalty and a plethora of celebrities. It has an asking price of £145,000, which means a 15 per cent deposit would be the equivalent of £21,750.

Kensington is one of the most expensive places to live in Britain, with properties often costing tens of millions of pounds.

This self-contained, second floor property is substantially cheaper than most of the homes in the area as it is a tiny studio with a lease of 99 years and ground rent of £20 a year. 

The 99 lease means the property is 'leased' from the freeholder - sometimes called the 'landlord' - meaning that you can use it for this period of time. A leasehold is different from a freehold property, which you own outright.

Experts do not recommend buying a home with a lease with under 85 years remaining, without finding out about the potential for an extension of it or the freehold acquisition.

Self-contained: The leasehold flat is on the second floor of a house in Kensington's Longridge Road

The property listing has a floor plan that reveals no measurements, but does show a shower room and a kitchenette

The studio has a modern shower room and a compact kitchen with a sink and white cupboards

Compact: The main living area includes space for a sofabed and has plenty of shelving

The Kensington property is being sold via auction, which means the final price it is sold for could be much higher than the initial asking price if several bidders come forward.

Amadeus Wilson, of mortgage brokers SPF Private Clients, explained that it is possible to purchase the property at auction with a 15 per cent deposit.

However, he says that this minimal deposit is only available on buy-to-let mortgages and the rental figures have to stack up before a deal is approved.

Bridging loans are also used to purchase auction properties, and because the finance is more complex, it tends to be experienced buyers who attend auctions.

'Auctions are mainly geared towards semi-professional investors as opposed to first-time buyers,' Mr Wilson said.

However, there is plenty of time for plucky first-time buyers as the auction is taking place in February and seeking the advice of a broker could be key. This is because securing the finance for a property sold at auction can be more complex than a standard purchase.

There is nothing to stop a first-time buyer pursuing the purchase of a property at auction, but they need to be aware that doing so may be far more challenging than a more commonplace purchase via an estate agent.  

The property is being sold via auction on February and likely to attract plenty of interest

Attractive to property investors: The property has a light and airy feel, and is ready to move into

Living in Zone 1 in the capital: There is room for a decent-sized bed in the living area

The average deposit in London this year has risen to an eye-watering £82,322. It compares to £47,838 a decade ago, according to figures by Nationwide Building Society given exclusively to MailOnline.

It currently takes buyers in the capital an average of 15 years and 10 months to save for a deposit, compared to nine years and nine months in 2008.

By contrast, the lowest average deposit is found in the North, currently at £20,202, up marginally from £19,819 in 2008.