Fewer mortgages for London property
Fewer mortgages are being granted to people looking to buy in London, the reason for this is simple, rising housing costs are pricing buyers out of the market, until the housing shortage is resolved the problem will continue to grow.
According to the Council of Mortgage Lenders there were 18,800 home purchase loans granted from April to June, this is a drop of 11.3% on the same period last year. The amount lent out for house purchases in London dropped 9.7 per cent to £5.5bn.
Stephen Smith, Director at the Legal and General Mortgage Club reportedly said,“House purchase loans in London in particular are significantly down on last year, where high asking prices have resulted in less activity in the market as fewer people are able to afford to make the property moves they want.”