London House Prices and Mortgages Up

/ 4 January 2013

Myfanwy Neville

Land Registry figures show that house prices in London rose by 7% in the year to the end of October, far outstripping increases elsewhere.

The numbers indicate the average London home now costs £365,000. Prices have risen in some other regions too, with the average national increase at 1.1% and average prices at £161,600.

But prices have fallen in the North West, North East, East Midlands and Yorkshire. Separate figures, from Moneyfacts, show that mortgage lenders continue to be very fussy about to whom they will lend money.

Although the number of mortgage deals on offer to the public has jumped by 8% in the past month, to 2,790, the vast majority of them – 67% – still require a deposit of at least 20% to be put down by the borrower.

About 12% of the current deals require a 10% down payment, and only 3% are available to people with a deposit of 5% or less. The FT cites a number of experts who do find cause for optimism in the mortgage market.

Source: BBC News Financial Times

Myfanwy Neville

Partner: Property and Construction, Sustainability and ESG

T +44 (0)20 8922 9376
E Myfanwy.Neville@bkl.co.uk

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