LONDON’S rising housing costs are pricing people out of the market with fewer mortgages being granted.
There were 18,800 home purchase loans granted from April to June, the Council of Mortgage Lenders said yesterday, marking an 11.3 per cent drop on the same period last year.
The amount lent out for house purchases in London dropped 9.7 per cent to £5.5bn.
A similar trend was seen in the first-time buyer market.
“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,” said Stephen Smith, a director at the Legal and General Mortgage Club, a broker.
Smith said more houses would need to be built to accommodate those looking to buy.