The chief executive of the Nationwide Building Society, Graham Beale, has said that there are sign of “natural correction” to London’s overheated property market.
Although property prices across most of the UK have escalated in recent years, in London last year prices rose by around 18% on average, compared with 9.1% across the UK.
The Nationwide is the UK’s largest residential mortgage lender and Mr Beale told London newspaper the Evening Standard that he had spoken to “a lot of estate agents” recently and had learned that, after a “frenetic” start in the New Year, the property market in London was beginning to show signs of levelling out.
“A hint of natural correction is going on,” said Mr Beale.
“It’s very early and I can’t be conclusive at the moment. My view is that in London we will see a natural correction through the summer months. The intense heat does seem to be dissipating a bit,” he added.
Critics of the government’s Help to Buy scheme have said that it has helped to fuel a property bubble.
The Bank of England is calling on lenders to make sure homebuyers can afford mortgage repayments – including any increase when interest rates begin to move upwards.
Mr Beale said that “nervous” homebuyers are now beginning to walk away from “over-ambitious asking prices” and this is helping to cool down the property market.
Duncan Lewis Housing Solicitors
Duncan Lewis is a leading firm of housing solicitors and can advise on housing matters such as debt and mortgage repossession – as well as Local Authority housing and housing possession.
Duncan Lewis is also one of the UK’s leading Legal Aid firms and can help with disrepair of rental property and Landlord & Tenant disputes relating to rental property, as well as unlawful eviction.
For expert advice on housing law, contact Duncan Lewis housing solicitors on 020 7923 4020.