Legal News

A new report by the Council of Mortgage Lenders (CML) has revealed that southwest London now has more debt than the whole of Wales.

Estate agents say that escalating house prices in areas such as Balham, Battersea, Brixton, Chelsea, Clapham, Earlsfield and Fulham mean that homeowners in southwest London now have £30 billion-worth of related debt.

The Daily Mail reports that in the last year, house prices in southwest London have risen by as much as 30%. Whereas the whole of Wales owes £28.6bn, southwest London now owes £29.4bn.

The report covered all 10,834 postcodes in Britain and found that the postcode SW11 6

had the most debt. The area includes 4,370 homes and the residents have a total debt of £665m. Homes in the area sell for around £1.1m and it is an area popular with young couples.

The average cost of a property in London is now around £365,000 ? whereas in Wales, the average cost of a house is £140,000.

Campaign group the Homeowners’ Alliance has warned that when interest rates begin to rise, young families may not be able to cope with their mortgage repayments.

Paula Higgins said:

“There is a bit of a frenzy out there. People really need to make sure that they can afford their mortgage in the long term.”

Critics of the government’s Help to Buy scheme claim that it is fuelling a property bubble ? the scheme encourages first-time buyers to get on the property ladder, with the government underwriting 15% of a mortgage on a property up to £600,000, with just 5% deposits required.

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors can advise on debt and mortgage repossession, as well as Landlord & Tenant issues and housing benefit.

Duncan Lewis housing solicitors are also a leading firm of Legal Aid solicitors.

For expert advice on housing law and mortgage repossession or debt, contact Duncan Lewis housing solicitors on 020 7923 4020.