South London hits new mortgage lending high

New mortgage lending reached approximately £8bn in London postcodes SE and SW during 2016/17, by far surpassing lending in Wales (£6.8bn) and Scotland (£8.2bn), according to new figures.

Figures from the Financial Conduct Authority (FCA), obtained by peer-to-peer lender Lendy reveal that topping the chart of new mortgage lending in the London boroughs were Wandsworth (SW18) and Wimbledon (SW19).  In Wandsworth property owners borrowed £472m and in Wimbledon, £408m.

Co-founder of Lendy, Liam Brooke said: “House prices in areas like Wimbledon and Wandsworth have continued to climb sharply, even through Brexit. Lenders view them as a safe bet, and continue to commit billions of pounds in new lending to them.”

In total, Londoners took out £17bn in new mortgages last year, while house prices continued to rise in the capital, against a backdrop of slowing national prices.

Outside of London the strongest region was Maidenhead in Berkshire.  Maidenhead borrowed £301m in new mortgages, making it to 11th place out of the 2,717 postcodes studied.

Prices in prime central London rose by 4.6% over the last quarter to an average of £1.9m, despite sales falling by 21% on Q4 2016. The increase in prices is thought to have been driven by the rise in sales of more expensive properties, as sales of properties valued between £2m and £5m were up by 8.5% annually, according to Land Registry figures.

Meanwhile, the quarter-on-quarter price growth in greater London was 1.2%, and the average price growth in England and Wales was 0.29%

Naomi Heaton, CEO of LCP, said: “The increase in average prices is likely to reflect a greater proportion of higher value properties being sold, rather than any real underlying price growth. This can, in part, be attributed to international homebuyers taking advantage of significant price discounts offered on top-end properties and beneficial currency exchange rates.”

 

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