Marsh & Parsons responding to the latest regional data from CML
Mon 26 Nov 2012
"A sterling performance from house prices in the capital has given lenders and prospective buyers alike more confidence in the market than in other parts of the UK, and this boosted lending levels even before the Funding For Lending Scheme started to fully take root. But its clear to see that its not plain sailing for first-time buyers in London. Higher house prices mean buyers must supply far larger deposits than elsewhere a task made even tougher by lenders restricting new London buyers to lower average LTVs than elsewhere, when the exact opposite is necessary to stimulate the lower end of Londons housing market. In the capital, the average buyer must now provide a deposit of over 60,000 - more than twice the UK average, without even factoring in the additional burden of stamp duty."*
*Based on analysis of CML Q3 regional lending data, London first-time buyers provide an average deposit of 60,153 compared to a UK average of 27,368.